Chinese scrap ministry of railways to ways to tackle big debt legacy

A new model for rail service provision in China is being put in place to address a financial overhang at the now-defunct Railways Ministry.

A newely separated China Railway Corporation will now have to take high costs and its mountainous debt into consideration when setting new ticket prices and deciding upon investment.

The decision was announced at this year’s session of the National People’s Congress. During the session, the Ministry of Railways, which was established in 1949,...