Safety of China’s railway system questioned after deadly crash

The Ministry of Railways in China reports that the network’s debt load reached RMB2 trillion (US$312.8 billion) in the first half of 2011. Fears that the major expansion of the railway system in China is not matched by safety systems emerged after the deadly train crash in Wenzhou on July 23, 2011 which killed 40 and injured more than 190 passengers. The debt load is up 42.1% from 2010, according to ministry records. State-owned banks including ICBC, Bank of China, China Construction Bank, Agricultural Bank of China and the Bank of Communications indicated that they will not be adjusting lending rates to the ministry because of the recent train accident. A regulatory official said that network expansion loans will continue as well as projects to upgrade the railway security system. (August 3, 2011)