Beijing Subway Bond no Fast Train to Profit

Bareksa.com - Hi John, we're getting the kick off of the Chinese government tapping foreign bond markets and first stop we have the Beijing subway system. Sounds like a relatively glamorous one.Yes, this is a curious one and as a resident of Beijing, I'm happy about anything that brings more money into Beijing's subway system. In this case, the government is asking foreign investors to put in 190 million dollars to help it build extra subway lines in the capital. Now this is an example of good investment, China needs more subway lines. They're good for the environment, they're good for productivity because they get people where they want to go faster. But it's not necessarily going to be good for investors. Subway lines tend to be a disastrous investment almost everywhere. And in China, you've got the extra problem of ticket prices being held right down and co-investing with the government that may not be very good at managing your money. (Source : Reuters)