Metalnewsnet 13 May ：

China Daily quoted Bank of China said betting on the nation ongoing railway construction boom it planned to invest CNY 7.5 billion in the operator of a 1,260 kilometer railway link between northern China major coal mines and port cities.

BOC said the nation third largest lender by market value plans to purchase a 14.5% stake in the yet to be established railway company, with registered capital of CNY 51.9 billion. It said the investment will be made using foreign currency through its Hong Kong based investment arm Bank of China Group Investment Ltd and is still pending regulatory approval from regulators including the Ministry of Commence.

The deal follows a decision by the lender a month earlier to invest up to CNY 6 billion for a 4.5% share in a State run construction firm charged with building an express railway linking Beijing and Shanghai, shedding light on the bank diversified business development strategy.

The bank said "The investment is expected to bring reasonable profits to the bank and will help the lender obtain more business opportunities in the country massive railway construction and investment."

The 1,260 kilometers railway, slated to pass through northern China Shanxi, Henan and Shandong provinces is part of the country effort to boost its railway network nationwide and catch up with increasing transportation demand spurred by rapid economic growth in recent years.

( from China Daily)