China Railway Group Faces Scrutiny Over Corruption Allegations
China Railway Group, a major construction and engineering company, is facing scrutiny over corruption allegations involving one of its subsidiaries. The company’s stock price has been subject to fluctuations in recent weeks.
Market Impact
The company’s stock price has been volatile, with fluctuations in recent weeks. Despite this, some experts believe that high-dividend stocks, including those related to state-owned enterprises, may offer absolute and relative returns.
State-Owned Enterprises in the Construction Industry
State-owned enterprises have been increasing their market share in the construction industry, with some ETFs seeing significant growth in recent months.
- Notable examples of state-owned enterprises in the construction industry include:
- China Railway Group
- Other major construction and engineering companies
- Growth in market share has been driven by various factors, including:
- Increased government investment in infrastructure projects
- Growing demand for construction services
Quality of Construction Concerns
Concerns have been raised about the quality of construction in certain projects, including a Bangkok skyscraper that collapsed in an earthquake. An anti-corruption watchdog had previously flagged irregularities in the building’s construction.
Safety and Quality of Construction Projects
The collapse of the Bangkok skyscraper has raised questions about the safety and quality of construction projects undertaken by Chinese companies operating abroad.