China Railway/ Midas

Strategy (China Railway)/ Midas: China’s fund-strapped railway sector will accept investment from a wide range of sources as transport capacity lags behind demand. Private businesses have already signed deals for railway construction projects and the State Railways Administration has cut the number of private funded projects that have to go through review and approvals. The move should continue to provide tailwinds on the railway industry as investment capital continue to pour in, with market observers anticipating that the renewed focus on deregulation will benefit the industry strongly. In S’pore, Midas, a maker of aluminium train extrusion profiles, is one of the few counters which may be viewed as a proxy play to the sector.