Shanghai - AFP
China Railway Group said Thursday it scrapped plans to raise 6.24 billion yuan ($975 million) in a private share placement as Beijing suspended railway building projects following last month\'s train crash. The major railroad construction firm said last year it would issue up to 1.54 billion domestic currency A shares at a price of no less than 4.05 yuan to 10 investors and use proceeds to fund projects. These included a metro project in Shenzhen, a southern city neighbouring Hong Kong, and bridges and roads in the southern province of Guangxi. The company cited \"uncertainties\" about obtaining government approval for the share placement following changes in policy, according to a statement to the Shanghai Stock Exchange. It is also listed in Hong Kong. China\'s State Council, or cabinet, said Wednesday it had decided to suspend all new railway construction projects, conduct safety checks on the high-speed rail network and cut the speed of trains on high-speed lines. The business of China\'s railway companies has been crippled by the accident near the eastern city of Wenzhou on July 23, which killed 40 people and raised concerns over the safety of the nation\'s fast-growing high-speed rail sector. Separately, listed railway firm CSR Corp, maker of the trains involved in the crash, said Thursday two major shareholders would delay the public trading of the 6.52 billion non-tradable shares they held for three more years.