SHANGHAI (Reuters) - China Railway Group (0390.HK: Quote, Profile, Research)(601390.SS: Quote, Profile, Research), the country's largest railway and highway builder, said on Tuesday that two of its subsidiaries have won two contracts worth a total of 8.1 billion yuan ($1.2 billion).

One contract to upgrade part of the railway links between Beijing and Kowloon is worth 7.6 billion yuan, equivalent to 4.25 percent of the company's 2007 sales under domestic accounting standards, the company said in a filing with the Shanghai Stock Exchange.

The other contract, worth 513.9 million yuan, is to build a highway in Ethiopia, the company said.

($1=6.835 Yuan)

(Reporting by Rujun Shen; Editing by Ken Wills)