Summary：More than 80 percent of the suspended railway projects are recommencing after funds worth almost 50 billion yuan ($7.94 billion) have been put in place, China Business News reported Tuesday, citing railway expert Wang Mengshu.

More than 80 percent of the suspended railway projects are recommencing after funds worth almost 50 billion yuan ($7.94 billion) have been put in place, China Business News reported Tuesday, citing railway expert Wang Mengshu.

"At least 40 billion yuan's worth of loans from banks can be guaranteed," said Wang, "the current amount of raised money is not bad in terms of the resumed railway projects."

But since a gap of more than 20 billion yuan still exists, a few less important projects have to be shelved to ensure the completion of key railway lines, he warned.

"In fact, 80 billion yuan is annually needed to maintain the construction rate specified in a revised state blueprint on railway networks in 2008," Huang said.

Last August, seven large construction groups urged the central government to take nationwide railway stoppages seriously in a joint statement submitted to China's State Council, the cabinet.

In late September 2011, the State Council asked the National Development and Reform Commission, China's top economic planner, to seek solutions for the financial difficulties in railway construction.

From October to November, the Ministry of Railways was financed over 20 billion yuan and raised another 7 billion yuan after issuing construction bonds for three consecutive times in a month.

"Despite some relief from financial distress in 2012, it is imperative to reform the railway system in China considering its fluctuations in the recent years," warned an analyst from Huatia United Securities, who declined to be named.