China issued 40 billion yuan (about US$5 billion) worth of railway construction bonds in 2006, the largest amount for any one sector, according to the Ministry of Railways.

China has issued more than 100 billion yuan of corporate bonds this year, a record high.

According to the ministry, the 40 billion yuan will be used to purchase trains, construct the Beijing-Tianjin express railway and build 19 railways including the Zhengzhou-Xi'an and Wuhan-Guangzhou passenger railways.

The bonds, maturing over a range of 5 to 30 years, carry fixed annual interest rates ranging from 3.65 percent to 4.10 percent.

Yu Bangli, a ministry official, said the ministry has issued over 68 billion yuan worth of railway construction bonds since 1995, and that these play a crucial role in China's railway construction.

(Xinhua News Agency December 19, 2006)