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China Railway drops $966m share placement plan

Updated: 2011-08-11 09:42

(Agencies)

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SHANGHAI - China Railway Group, the country's largest railroad builder, has dropped a plan to raise about 6.2 billion yuan ($966 million) via a share placement, Reuters reported.

Shareholder approval for the proposal, which it obtained in August 2010, had expired, China Railway said in a statement to the Shanghai Stock Exchange.

"Given changes in the country's macro policy, there have been uncertainties in regulatory approvals," it said.

The company had originally aimed to issue up to 1.52 billion yuan-denominated A-shares via the share sale.

China plans to suspend new railway project approvals and launch safety checks on existing equipment to address growing public concern following a deadly crash between two high-speed trains last month, Premier Wen Jiabao was quoted as saying by State media on Wednesday.