Microblog insights

Topic 1: China's cabinet on March 14 approved the setting up of a railway company with a registered capital of 1.04 trillion yuan ($167.4 billion) following the government's decision to dissolve the scandal-plagued former ministry of railways. The Ministry of Finance will fund the setting up of the firm, while the Ministry of Transport and the State railways administration will supervise its business and performance. The new company will enjoy favorable policies extended to the former ministry of railways, the government said. New bonds issued to pay for the construction of railways would also be guaranteed by the government.

DisuKane: After the split, the next reform is expected to break the monopoly of the former ministry of railways. The previous break-up of telecommunications yielded good results.

Banankuaimen: The new railway company will inherit the former ministry's 2.26 trillion yuan debt. Will its assets be as much as its liabilities? It would ensure that the price of train tickets will rise in the future. I bet airline stocks rally.