Photo: Wikimedia Commons
The Chinese government may not want the media reporting on problems with its railway infrastructure projects, but that’s not convincing the market at all, reports Shanghai Daily.The Shanghai stock index tumbled 3%, that’s the most since January of this year, and railway companies were the stocks hit the hardest.
After this weekend’s horrible train accident, CSR Corp., the company that made the bullet train, saw its shared dive 8.9%.
Via Shanghai Daily:
The bullet train, made by CSR Corp, broke down after it was struck by lightning was rear-ended by another locomotive two days ago near Wenzhou city, Xinhua news agency said. The crash, which pushed four coaches off a viaduct, injured more than 200 people, according to Xinhua.
The report says 200, yes, but we know that Xinhua, a state publication, is falling in line with official figures. The damage could actually be much worse. That uncertainty has sent money running into airlines. This morning, China Airlines gained 1.19%.
Oh, and for the record, the Chinese Railway Ministry is $300 billion in debt.