CSR President Zhao Xiaogang: Misunderstood High-Speed Rail

2012-03-14 09:55:40
Summary:Since the beginning of 2012, CSR President Zhao Xiaogang has been so busy that he almost has no time to eat. His lunch is usually a bowl of common noodles.
Since the beginning of 2012, CSR President Zhao Xiaogang has been so busy that he almost has no time to eat. His lunch is usually a bowl of common noodles. “When we visited in Europe, we often ate a meal for a couple of hours, which was very tired. We don’t have that much time to have a meal with them.” Maybe it is the busy work that has made today’s CSR’s 601766.SH, which, in recently years, has seen rapid development. But the situation of the capital market gives Zhao Xiaogang grievance and investors continuously sell their CSR stocks. “CSR’s Hong Kong stocks are recently going up because Hong Kong media recently reprinted news published by the Ministry of Railways that the construction fund of this year has been in place, but A-stock still shows no good sign.” Because of this, Zhao Xiaogang held a communication meeting with CSR investors on November 7, 2011 after the temporary stockholder’s meeting was over and sincerely addressed many questions brought up by the investors. On January 11, CSR’s directional increase was approved by CSRC. Regarding the shrinking financing scale speculated by the media, in the interview with Talents, Zhao Xiaogang thought that the price for directional increase which is RMB4.46 per share is a hard-won opportunity to buy in. In addition, the reporter found that the price Zhao Xiaogang had for CSR stock was RMB5.6 per share, which is much higher than the directional increase price. Actually, most domestic institutional investors are not quite clear about the investment logic in China’s high-speed rail, or the development trend of rail transit. The boom and slump in the high-speed rail concept stocks shows the moodiness and immature of the investors. After 7.23 railway accident, will Chinese government tighten its investment in high-speed rail? How to deal with the development fund for high-speed rail when the situation of fund is critical? How about the future growth of high-speed rail concept stocks represented by CSR? Do they have long-term investment value? Zhao Xiaogang said that only when those problems were answered clearly can one truly understand the investment logic in China’s high-speed rail. Outbreak of rigid demand Though “it’s difficult to buy a ticket online” became a new topic in 2012 transport during the Spring Festival, compared with the past, thank to high-speed rail, travelers held up at the railway stations saw a sharp decrease. “Not so crowded in the peak of transport during the Spring Festival” has become a highlight in the Spring Festival. During those 40 days, to cope with sudden burst of passenger flow, China high-speed rails even extended operation time in the night. It is recorded that in the 40 days the railway carried 221 million passengers in total.

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