China subway boom spotlights investment risks

In the Chinese city of Nanchang, where the local government is building a new subway network, the modern train station rising out of the red earth sits in an empty part of town. The crowds that Nanchang envisions will someday use its metro are nowhere in sight.

Nanchang’s population of three million – relatively small by China’s standards – and the municipality’s finances raise questions about the subway’s viability and makes the city a case study of the risks China takes when it relies on investment to power growth.

via Business feed http://www.scmp.com/news/china/article/1107344/china-subway-boom-spotlights-investment-risks