Eastern China’s Jinan-Qingdao high-speed railway, the nation’s No. 1 such project mainly invested by a regional government, has received its first overseas investment from Kuwait’s sovereign wealth fund.
Shandong Railway Investment Holding Group, the controlling shareholder, sold a 7.2 percent stake in the completed project with the Kuwait Investment Authority spending CNY1.4 billion (USD197.1 million) and the Agricultural Bank of China CNY1 billion, local news outlet Iqilu.Com reported.
The 380-kilometer Jinan-Qingdao high-speed railway was opened to traffic last December after a construction period of three years. The route carries about 20,000 passengers daily.
The introduction of overseas investors enhances the influence of China’s railway business and demonstrates these projects’ quality, efficiency, and profitability, the controlling shareholder added.
Founded in 1953, the Kuwait City-headquartered sovereign wealth fund manages assets worth about USD600 billion.