Zhengqigeyi China's Railways In The Context Of The Financing Problem Analysis And Policy Recommendations

Since Ministry of Railways proposed development plan in 2003,railway construction in China began to speed up gradually."Adjusted the "long-term railway network plan" released in 2008,which raise the goal of China's railway construction, and China's large-scale railway construction became fully.Large-scale railway construction of the railway put higher requirements on financing of the railway, and Central railway construction investment can not meet high demand.In the current combination of government function and enterprise management railway management system, outside equity capital subject to many limitations, so it can only rely on a lot of debt financing to meet the increasing demand for railway construction investment.The rate of assets and liabilities of Ministry of Railways increase year after year, Strong pressure to the debt service seriously affect the sound development of the railway industry.Under the background of combination of government function and enterprise management, how to attract outside equity capital to participate in railway construction and alleviate the debt increasing pressure become a urgent problem needed to solve.This paper introduces the background of management system of the railway system, and then mentioned financial difficulties.With analysis, the specific causes of railway financing problems are:the strict rate regulation, the chaos of public welfare and private natural of rail, External economic characteristics of railway construction and the right of Ministry of Railways in a unified scheduling and income distribution.With the United States, Japan and the EU's railway financing experiences,we get inspiration:Rely heavily on debt financing model for railway construction will not last long, we must increase government investment, effectively attract external equity investors in order to guarantee the healthy development of the railway business.Finally this paper gives recommendations to solve the financing problems of China's current rail policy:to Increase government investment in railway construction by increasing the funding sources and a clear direction for government investment; to Attract outside equity investors to invest in building roads by the fair treatment in scheduling and income distribution; to select the better profit railway assets speed up the listing financing work.