Updated: 2013-03-18 05:42
Topic 1: China's cabinet on March 14 approved the setting up of a railway company with a registered capital of 1.04 trillion yuan ($167.4 billion) following the government's decision to dissolve the scandal-plagued former ministry of railways. The Ministry of Finance will fund the setting up of the firm, while the Ministry of Transport and the State railways administration will supervise its business and performance. The new company will enjoy favorable policies extended to the former ministry of railways, the government said. New bonds issued to pay for the construction of railways would also be guaranteed by the government.
DisuKane: After the split, the next reform is expected to break the monopoly of the former ministry of railways. The previous break-up of telecommunications yielded good results.
Banankuaimen: The new railway company will inherit the former ministry's 2.26 trillion yuan debt. Will its assets be as much as its liabilities? It would ensure that the price of train tickets will rise in the future. I bet airline stocks rally.
Tuzi: The marketization of the railways would require introducing a competitive mechanism into the sector, otherwise the establishment of the new railway company is just a change of name.
S-s Sky: The assets of the former ministry of railways are nearly 10 trillion yuan ($1.6 trillion). How come the value shrank to 4 trillion yuan after the restructuring?
Topic 2: China's home prices are expected to fall in 2013 as the government will strictly enforce the latest property curbs, the Ministry of Housing and Urban-Rural Development said on March 14. Housing Minister Jiang Weixin also said the so-called "economical houses", a kind of public home slightly cheaper than commercial residences that featured many scandals, could be abolished. China earlier this month announced fresh measures to rein in home prices. The curbs include stricter implementation of an existing 20 percent capital gains tax on home sales, tightening restrictions on home buying and higher down payments for those buying a second home in cities where prices are rising too quickly.
Nasulading: What Minister Jiang really said is the curbing policy will go down to the "local government", instead of the price going down.
French_Vanilla: If house prices do not fall, will he resign?
Qingtianbailu: Don't listen to the minister's nonsense. If "economical houses" are not built, why would we want the government?
All information came from Sina Weibo
(China Daily 03/18/2013 page14)