China invested 72.491 billion yuan (9.06 billion U.S. dollars) in railway construction from January to July, up 1.8 times on the same period last year, a Ministry of Railway spokesman said here on Tuesday.

Of the total, 53.357 billion yuan came from the Ministry, up 1.3 times on the same period last year, said spokesman Wang Yongping.

Meanwhile, outlays by local governments and companies surged to 18.588 billion yuan, up 5.5 times year-on-year. The money will be invested in both state-run and joint-venture railways.

Investment in local railway construction reached 545 million yuan, all bankrolled by local governments, Wang said.

Analysts say that the enthusiasm of local governments and companies for railway construction reflects the popularity of China's new railway investment policy.

Following market estimates that 1.5 trillion yuan would be needed for railway construction from 2006 to 2010, China's railway authorities have opened their arms to non-public capital.

Last May, the Ministry recommended a package of 43 railway investment programs to the general public. Two months later, a regulation was issued, providing the legal basis for attracting and using market capital.

Daqin Railway Co., Ltd., the operator of northern China's major coal transportation railway line, was listed in the Shanghai Stock Market on August 1 this year. It raised 15 billion yuan by issuing 3.03 billion shares at a price of 4.95 yuan per share.

More projects will be introduced to the public this year, Wang said, giving no specific number.

Official data shows that 26 railway joint-ventures have been set up since last year with total investment exceeding 420 billion yuan, with more than 56 billion yuan from local governments, investment companies and corporate institutions.

Source: Xinhua