BEIJING (Reuters) - China’s cabinet on Friday announced new rules to strengthen management of urban railway projects as policymakers look to control high amounts of debt at the local government level.
In a document released Friday, the State Council said that new projects involving companies with excessively high debt ratios will be suspended. China is also setting new baseline requirements on ridership levels and the size and financial resources for cities applying to build new urban railways.
Last year urban rail projects in several cities were halted due to concerns the projects were not financially sustainable.
Reporting by Beijing Monitoring Desk; Editing by Shri Navaratnam