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China railway builders winners in boom - Barron's

NEW YORK, July 6 (Reuters) - Two leading railway construction companies, China Railway Group 0390.HK and China Railway Construction Group 1186.HK, will be among the biggest winners in the country's railway building boom that is expected to benefit infrastructure builders the most, according to a Barron's report in its July 7 issue.

Total investment in China’s railway sector is expected to reach $200 billion, with both companies well positioned to grab the new business, Barron’s reported, citing Jonathan Garner, emerging markets strategist with Morgan Stanley in London.

The companies have a nearly 85 percent share of China’s railway infrastructure market, according to the report.

Despite their high price-to-earning ratios, the stocks have become more appealing with the recent market correction, Barron’s said, noting that China Railway Group’s share price has dropped by half since peaking in January.

Reporting by Phil Wahba, editing by Richard Chang phil.wahba@thomsonreuters.com; + 1 646 223 6128

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