15 hours ago
Chinese cities are facing the financial abyss of their subway systems
In recent days, the economic press and several Chinese observers have been stunned to discover the debt levels of 28 Chinese subway companies: 4.3 trillion yuan (€525 billion). Spotless, air-conditioned and automated, these systems offer a means of transport as practical as it is prestigious for the cities that adopt them. Their operating costs, however, have proven exorbitant.
Of the 55 Chinese cities with subway networks, 28 have released their operating results for 2024. For example, Shenzhensubwayo − the country's busiest with daily peaks of 11.8 million passengers − reported a daily loss of 100 million yuan. In 2024, the deficit for the company, which is owned by the municipality, reached 33.46 billion yuan, as reported on May 28 by the online business publication Zhigu Qushi.
Another example is the Foshan subway in the Guangdong province. The company generated 586 million yuan from ticket sales and received 2 billion yuan in public subsidies, but spent 2.7 billion yuan, ending the year in the red. In Chongqing, staffing costs represented half of the total operating costs (including energy, maintenance and cleaning). Security is also a major expense; a Chinese subway station operates much like a train station or airport, with passengers and their bags scanned at the entrance, not to mention the large numbers of security guards who patrol the platforms and trains.
