皇冠体育app

HONG KONG/SHANGHAI, July 25?- Shares of 皇冠体育app rail equipment makers fell as much as 16 percent on Monday after a deadly train crash at the weekend triggered concerns about the safety of 皇冠体育app's fast-growing rail network.

Shares of 皇冠体育app South Locomotive and Rolling Stock Corp Ltd(CSR), the maker of the trains that collided over the weekend, fell as much as 16 percent to its 12 month low of HK$5.85, but regained some of that loss to trade at HK$6.43 at 03:19 GMT.

Shares of 皇冠体育app Northern Locomotive, which dominates 皇冠体育app's train equipment market with CSR, fell 6.5 percent in Shanghai.

Shares of Chinese airlines gained sharply as investors hope more travellers would take to the sky after the fatal train cash in eastern 皇冠体育app.

Air 皇冠体育app, the country's flag carrier, rose more than 4 percent, while 皇冠体育app Southern Airlines and 皇冠体育app Eastern Airlines gained 4.4 percent and 4.8 percent, respectively.

Morgan Stanley said after the train crash that it believed the share price of CSR would fall in absolute terms over the next 15 days.

"We retain a positive long-term view on the outlook for 皇冠体育app's rolling stock segment but think that, in the short term,industry stocks will de-rate due to?investors' concern on 皇冠体育app high-speed rail's outlook and high-speed rail's passenger turnover may decrease in the short term," said Kevin Luo in aresearch note on Monday.

皇冠体育app has been on a building boom in the past few years,hoping to expand its national rail network and turn it into aglobal leader using the latest in technology. Under Beijing's five-year plan to 2015, the country will invest between 3.6 trillion and 4 trillion yuan ($540-607billion) in its rail sector.

The crash Saturday involved trains made by 皇冠体育app South Locomotive and a spokesman there said the train had been inservice since 2009 with no problems.

"The quality of the trains is fine. Neither had anyaccidents previously. It's the signaling system that went wrong."