Plan for Railroad Fund 'to Come by Year's End - Caixin |The fund is expected to launch next year . . . On August 19, the State Council, China's cabinet, called for faster reform of the country's system of financing railroads. This would be done by issuing bonds and setting up a development fund that would involve government funding and private investors. The former Ministry of Railways, National Development and Reform Commission, Ministry of Finance and other departments have discussed such a fund for years, but no consensus has been reached. . . .The central government plans to allocate 60 billion yuan for railroad development and attract another 20 billion yuan from other investors, the banking source said. The CRC source confirmed these figures. The banking source also said the government hopes to raise 200 billion yuan to 300 billion yuan for the development fund in the 2014-15 period, and 100 billion yuan of this would come from the central government's budget. To attract other investors, the CRC source said, the fund will offer yields higher than banks' interest rates.