BEIJING (REUTERS) - China Railway Group said on Monday (Sept 14) it would absorb the assets of subsidiary China Railway Erju as part of wider efforts to streamline the government's sprawling railway sector.
Trading in both firms, which are controlled by state-owned holding company China Railway Engineering Corporation, was halted on Monday.
Based on their last mainland-listed share prices, China Railway Group was valued at 233.92 billion yuan (S$51.78 billion) while China Railway Erju was valued at 17.46 billion yuan.
China has pledged to reform its bloated and inefficient state-owned enterprises (SOEs), and on Sunday published details of how it planned to restructure the sector, including partial privatisation.
It identified the railway sector as one that could be suitable for limited non-state investment. Earlier this year, the government merged the country's top two train makers into rail giant CRRC Corp.