Railway construction in China

The China Railway Construction Corporation is the second largest state-owned construction enterprise in the People’s Republic of China, just after China Railway Engineering Corporation. Its headquarter is in Beijing.

Formerly the railway arm of the People’s Liberation Army, CRCC is engaged in the businesses of construction contracting, survey, design and consultation, industrial manufacturing, exploitation of real estate, capital operation and logistics. It is currently China’s largest construction contractor and the world’s sixth construction contractor.^[2]

CRCC is under the supervision by the State Council of the People’s Republic of China.

In February 2008, A shares and H shares of CRCC were listed on the Shanghai and Hong Kong, with IPO price RMB$9.8 and HK$10.7 respectively.

The A shares closed at RMB$11.64 at the first trading day, 10 March 2008, 28% rise compared with its IPO price of RMB$9.08. The H shares closed at HK$12, 12% rise compared with its IPO price of HK$10.7.

The performance was poorer than expected because of poor investment atmosphere from United States subprime mortgage crisis and China’s economic macro-control. However, it was the second-largest IPO worldwide, with funds raised in the amount of USD 5,709m, second only to the IPO of Visa (USD 19,650m).

“1186″, the stock code of CRCC H shares, was used by two famous companies before.

The first time was when Richard Li’s Pacific Century CyberWorks injected its assets into Tricom Holdings, which had stock code of “1186″. But “1186″ was not used after Pacific Century CyberWorks merged with Hong Kong Telecom in 2000 to become PCCW.

The second time was when Value Partners Group used it for Value Partners China Greenchip Fund. But it was delisted in 2007 and became an open-ended mutual fund.