Urban rail networks to spread

Analyst said investment into urban rail transit infrastructure in China, including subways, light rail and modern trams, has great potential and could increase 90 percent in the next five years, making a market worth hundreds of billions of yuan per year.

Xu Bin, Transportation & Infrastructure Analyst at China Equities Research of UBS Securities Co Ltd, said in Shanghai on Tuesday that the entire size of investment in this sector may rocket from less than 400 billion yuan ($60 billion) in 2015 to 700 billion yuan in the next five years, amounting to a growth of more than 90 percent This will make urban rail investment about the same size as the railway sector.

"In other words, some rail construction companies could shift their business focus from railways to the urban transit network," said Xu.