China issued 40 billion yuan (US$5 billion) worth of railway construction bonds in 2006, the largest amount for a particular 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 5-year, 7-year, 10-year, 20-year and 30-year bonds carry fixed annual interest rates ranging from 3.65 percent to 4.10 percent.

Yu Bangli, an official with the ministry, said the ministry has issued more than 68 billion yuan worth of railway construction bonds since 1995, and the funds play a crucial role in China's railway construction.

(Xinhua News Agency December 19, 2006)