Curbs on urban transit projects urged

Local governments have been urged to curb new production capacity of urban rail vehicles as part of China's ongoing efforts to curb industrial overcapacity and prevent debt risks.

Provincial-level governments should strictly control the expansion of new vehicles for urban rail transit projects, and cities with a vehicle capacity utilization rate lower than 80 percent on average in the past two years will not be allowed to increase capacity, according to a guideline issued on Tuesday by the National Development and Reform Commission, the nation's top economic regulator.

Provincial-level governments have been asked to enhance guidance to enterprises to help avoid blind investment and maintain capacity at reasonable levels, according to the guideline.