China Railway Corporation
China Railway Corporation performs the business functions of the defunct Ministry of Railways (MOR).
According to a cabinet reshuffle plan, which was adopted at a plenary meeting of the First Session of the 12th National People's Congress (NPC), China Railway Corporation, with a registered capital of 1.04 trillion yuan (US$165.73 billion), is a wholly state-owned enterprise administered by the central government and supervised by the Ministry of Transport and the State Railways Administration (SRA).
The Ministry of Finance will represent the State Council in performing the functions of investors, according to a statement posted on the government website on March 14, 2013.
The SRA will perform the administrative functions, the China Railway Corporation will execute business operations which are currently controlled by the MOR.
The related assets, liabilities and personnel of the previous MOR will be transferred to the corporation, while the interests and rights of 18 local railway administrative bureaus, three transport companies and the remaining companies will belong to the corporation.
The statement noted the corporation could continue to enjoy favorable tax policies, while its bonds on railway construction will be supported by the government.
According to the statement, the central government will allow the corporation not to turn over gains made from state-owned assets before the debts of the former MOR are properly handled.
Like the MOR, the company will shoulder transportation for the purposes of public welfare, as the government pledged to subsidize businesses of this kind and to some extent cover the company's losses from public service railways.