China CNR Corp. led gains in shares of Chinese companies that build and supply equipment for railways on speculation they will win contracts for the construction of Thailand’s high-speed train system. China CNR produces passenger cars and wagons.
Thai Prime Minister Yingluck Shinawatra told reporters on Oct. 11 after meeting with Chinese Premier Li Keqiang in Bangkok that Chinese train companies had expressed interest in developing the southeastern Asian nation’s high-speed train system. China and Thailand signed six initial agreements during Li’s visit last week covering cooperation in technology, energy, environment and culture.
The first phase of Thailand’s high-speed train system includes total investment of 400 billion baht ($12.8 billion). China, Japan, South Korea and France expressed interest in bidding for contracts to build the network. The Thailand high speed rail system will have a budget of about $75 billion.