Debt-saddled China Railway Corp. (CRC) announces Restructure China Railway Corp. (CRC) becomes China State Railway Group Co. The beleaguered company says it wants to adopt a more market-oriented corporate structure. BEIJING: China Railway Corp. (CRC) has renamed itself China State Railway Group Co. Ltd. (CR) and adopted a more market-oriented corporate structure, the company said in a statement on its website Tuesday. China Railway is a solely state-owned enterprise with registered capital of 1·74tr yuan, established in accordance with company law. Its responsibilities include railway construction, operation, control and safety, allocation of network capacity and other public obligations as specified by national regulations. Announcing the change, China Railway said the reforms were designed to promote law-based, market-oriented operations, and support innovation as the organisation changes from a ‘traditional transport production enterprise’ into a ‘modern transport operation enterprise’. The revamp brings the company into line with a national push for reform of China’s state-owned enterprises. The new group will have a board of directors and a management team but no shareholder meetings. The Chinese government will remain the company’s sole shareholder, with the Ministry of Finance performing investor duties at the company on behalf of the State Council. The restructured group will inherit CRC’s significant existing debts, as well as its rights, qualifications and intellectual property. Former CRC executives, 63-year-old Lu Dongfu and 50-year-old Yang Yudong, will continue to head the group as its president and general manager. CRC, which has built the world’s largest high-speed rail network, has been criticized for accruing massive debts while doing so. These amounted to 5.27 trillion yuan ($764 billion) by the end of March 2019, according to CRC’s financial reports. Caixin reported last year that CRC was planning to list the Beijing-Shanghai high-speed railway line — one of its more profitable lines — which was seen as an attempt to seek more funds for expensive infrastructure building. China Railway Corp was formed in 2013, taking over operating and construction activities from the Ministry of Railways, which was abolished. A reform programme underway since 2017 had ‘laid a solid foundation and created favourable conditions for deepening the corporate system reform’, China Railway said. There is no board of shareholders, instead the Ministry of Finance performs these duties on behalf of the State Council. There is a board of directors and a management team, and, under the articles of Constitution of the Communist Party of China, a Party Leadership Group has been established ‘so that the Party’s overall leadership over the state-owned enterprise can be adhered to and strengthened’. Trade union and Communist Youth League organisations have also been established within China Railway.