Global regulators clear rail merger plan

China has set a growth target of around 7 percent for 2015 and policymakers said investment will continue to play a pivotal role.

The country owns leading technologies of high-speed trains and rich operating experience, making investment in the railway sector an irreplaceable choice, said Yao.

Investors will see opportunities in sectors such as railway equipment, related components, signals and current supply devices, said experts.

Exports of railway equipment hit 26.77 billion yuan in 2014, a year-on-year increase of 22.6 percent, according to the General Administration of Customs.

China is drawing up a guideline to help its equipment makers, particularly railway and nuclear companies, to go overseas and expand exports, the National Development and Reform Commission said last month.

Zhang Jianping, director of the International Economic Cooperation Institute of the National Development and Reform Commission, said China has to restructure its economy and change its development model by increasing outward investment, as part of its opening-up. China should expand its presence in global markets and contribute to the global market by creating more jobs in host countries.

The merged company will be named China Railway Rolling Stock Corp. The merger gained approval from the State-owned Assets Supervision and Administration Commission and shareholders of the two companies on Monday.