Chinese conglomerate Fosun International Ltd said on Thursday it will invest in a 46.2 billion yuan private-partnership project to develop a high-speed rail link, becoming the first private firm to take part in a Chinese high-speed rail project.
China’s government is keen to accept private capital to infrastructure projects so to minimize the debt burden of local authorities.
Fosun did not state how much it would invest in the project. Its chairman, billionaire Guo Guangcheng, in the statement said there was much scope for investment as infrastructure per capita in China lagged that of developed countries.
The country built the longest high-speed rail network in the world in less than 10 years but put heavy debt on national railway operator. At the end of June, Railway Corp’s liabilities were 4.21 trillion yuan.
Fosun also said Sunvision Capital, a subsidiary of its property arm, was involved in close to 500 billion yuan worth of PPP projects across China.