According to China State Railway Group Co., Ltd., to implement the decision and arrangement of the CPC Central Committee on speeding up the shareholding system reform of China Railway Corporation, China Railway Corporation has been transformed with the approval of the State Council into China State Railway Group Co., Ltd., which was established in Beijing today.
According to an official from the relevant department of China State Railway Group Co., Ltd., the implementation of the corporate system reform of the company is an important decision of the CPC Central Committee and the State Council on deepening the reform of state-owned enterprises and accelerate the shareholding reform of China Railway Corporation, a major measure to deepen the reform of the railway system, establish a modern enterprise system and promote law-based, market-oriented operation, and the inherent requirement for further promoting innovations in the system and mechanism of the national railway enterprise and realizing the transformation from traditional transport production enterprise to modern transport operation enterprise.
The official said that since 2017, the railway system has successively implemented the reform of the corporate system of railway administrations, the reform of the internal organizations of the head office of China Railway Corporation, the reform of the corporate system of affiliated non-transport enterprises and the reform of the internal organizations of railway administration group companies, which provided an important system and mechanism guarantee for promoting the high-quality development of the railway. At present, the railway industry has shown good momentum in development, the transport safety has been consistent, both passenger and freight transport have continued to grow, the operation efficiency has been improving, the railway construction has been promoted in a scientific and orderly manner, and the achievements of scientific and technological innovation have been fruitful. All of these have laid a solid foundation and created favorable conditions for deepening the corporate system reform.
The official said that China State Railway Group Co., Ltd., established after the transformation, is under the management of the central government. It is a solely state-owned enterprise established in accordance with the Company Law of the People's Republic of China. Its responsibilities include operation, construction and safety of railway transport specified in national regulations, unified control and command of railway transport, unified allocation of transport capacity of the railway network, public welfare transport tasks specified in national regulations and railway revenue clearing and income management. It is approved by the State Council as a State authorized investment entity and state-owned holding enterprise. Its Chinese name is “中国铁路” in short, and its English name is “China State Railway Group Co., Ltd., or “CHINA RAILWAY” in short and “CR” in abbreviation. With a registered capital of RMB 1,739.5 billion, the company focuses on railway passenger and freight transport and carries out diversified business operation. All creditor's rights, debts, brands, qualifications, certificates and IPRs of the former China Railway Corporation are to be assumed by China State Railway Group Co., Ltd. after its establishment.
According to the articles of Constitution of the Communist Party of China, the Party Leadership Group is established in China State Railway Group Co., Ltd. to lead the enterprise, to identify directions, control the overall situation, and guarantee implementation, and also todiscuss, and make decisions on significant issues in accordance with relevant regulations, so that the Party's overall leadership over the state-owned enterprise can be adhered to and strengthened. Trade union and Communist Youth League organizations are established in the company to carry out work under the leadership of the Party Leadership Group of the company.
According to relevant national laws and regulations, CR has no board of shareholders. The Ministry of Finance performs the duties of capital contributor on behalf of the State Council. It has Board of Directors and the management team executing duties under the legal person management system. It is to establish labor, human resources and remuneration system which meet the requirement of modern corporate system and demands of business, and improve the financing and accounting system according to relevant national laws, regulations and policies. According to its business demands, CR may set up subsidiaries, branches, and representative offices according to laws. Its wholly-owned subsidiaries or subsidiaries with holding shares, under unified control, can perform railway passenger & freight transport and other businesses by undertaking the chief responsibilities for safety, operation and stability.
The official stated that the establishment of China State Railway Group Co., Ltd will further exert the railway’s leading role in the integrated transportation system, improve the capital efficiency and benefit of national railways, enhance the enterprise’s endogenous development impetus, market vitality and risk-resisting performance and serve the national strategy and social economic development better; accelerate the pace of establishing modern corporate system, improve the corporate legal person management structure, improve the operation & management expertise and competitiveness of national railways; push the national railway enterprises to be widely involved in the market, provide better railway passenger & freight service and meet the people’s growing demands for better lives.
He also stressed that during the reform, CHINA RAILWAY will seriously learn the spirit of General Secretary Xi Jinping's important speeches, insist on the significant political principles of the Party on governance of the state-owned enterprises and the direction of reform for establishment of modernized corporate system, adhere to the strategic position of national railways, serve the overall social economic development, promote the reform of national railway enterprises to a deeper level, accelerate the pace of building up modernized corporate legal person management system via multi-level and multi-channel share-holding reform, promote vigorously the establishment of legislated and market-oriented operation & management system, speed up the building of modernized railway corporate system with Chinese characteristics so as to provide more reliable system guarantee for the sound and sustainable development of the railway sector. CHINA RAILWAY will also intensify the regulations on working disciplines and decision-making procedures during the reform to assure smooth and orderly railway construction & operation as well as safe production and stable team.