By Zhang Wenkui　

Date: 2001/12/27

Abstract:　

The reform of the railway investment and financing system should be reoriented towards: clear definition of responsibility on the parts of government and enterprise with enterprise becoming the main subject for investment and financing; "walking on two feet" and diversification of financing sources; and managing projects according to their categorization and demarcating financial frontiers. The basic content of the reform should be corporatization of the investment in and financing and operation of railway lines while giving enterprises the option to adopt special form of legal entity for some railway lines; restructuring project decision system, administrative procedures and financing means and differentiating commonweal projects from commercial projects.