Bank of China plans to spend nearly 10 billion yuan (1.5 billion dollars) to buy an eight percent stake in the operator of a high-speed railway linking Beijing and Shanghai, state media said Friday.
The commercial bank’s investment arm will buy the stake in Beijing-Shanghai High-Speed Railway Corp from the China Railway Investment Corp, the China Daily reported, citing unnamed sources.
China Railway Investment Corp, which is backed by the nation’s Ministry of Railways, currently owns 56 percent of the rail firm, the report said.
The 1,318-kilometre (819 miles) high-speed railway, which will cost 220.9 billion yuan, started construction in April 2008 and when completed it will cut the journey time between the two cities from 12 hours to five.
The National Council for Social Security Fund, China’s state pension fund, has a 8.7 percent stake in the rail firm after paying 10 billion yuan.
And an investment arm of China’s second largest life insurer Ping An Insurance paid 16 billion yuan for a 13.9 percent stake.