Shanghai Securities News reported China Railway has recently announced tender results of the 250km rail motor coach. CSR was awarded the entire tender of 91 x 250km motor coaches, settling down the first large-scale tender of China Railway.
The report cited people close to China Railway that the tender involved 795 high-power motor coaches, 159 railways, approx. 29,000 trucks and 726 passenger vehicles, totaling RMB50 billion. The tender was eventually shared by CSR and CNR, giants of the railway industry in China.
An insider pointed out that the tender will impose tremendous effects on the business results of CSR and CNR in the next period, since motor coaches are products with highest margins.
China CNR Corp led gains in shares of Chinese companies that build and supply equipment for railways on speculation they will win contracts for the construction of Thailand’s high-speed train system.
China CNR, which produces passenger cars and wagons, rose by the 10% daily limit in Shanghai to 4.59 yuan, the biggest one-day gain since February 2013. CSR Corp, which makes locomotives and cars, and Taiyuan Heavy Industry Co, a maker of train axles, also surged by the daily limit. China Railway Construction Corp rose 7.4% and China Railway Group Ltd climbed 8.1% at the mid-day trading break. China's benchmark Shanghai Composite Index (SHCOMP) rose 0.5%.
The shares gained after Prime Minister Yingluck Shinawatra told reporters on Oct 11 after meeting with Chinese Premier Li Keqiang in Bangkok that Chinese train companies had expressed interest in developing the southeastern Asian country's high-speed train system. China and Thailand signed six initial agreements during Li's visit last week covering cooperation in technology, energy, environment and culture.
China’s benchmark stock index rose to a one-month high as railway companies surged on speculation they may help build Thailand’s high-speed train system, offsetting data showing lower exports and faster inflation.
CSR Corp. (601766) and China CNR Corp. (601299), the nation’s biggest train makers, jumped by the 10 percent daily limit
