Rail shares edge up on Buffett bet

Billionaire investor Warren Buffett's purchase of US rail freight giant Burlington Northern Santa Fe Corp has spurred a rally in Chinese railways-related stocks, especially transportation and construction firms, and come as a shot in the arm for the sector.

Shares of railway transportation companies Daqin Railway Co, China Railway Tielong Container Logistics, Guangshen Railway and Good Hand Railway rallied after the announcement, with Railway Tielong Container Logistics and Guangshen Railway jumping by 7.95 percent and 6.02 percent, respectively, yesterday.

Even railway construction companies such as China Railway Construction Corp (CRCC), China Railway Group and China Railway Erju Co have edged up, boosted by higher expectations of the sector.