China approves 25 urban rail projects

China's top economic planning agency has approved 25 urban rail projects that could be worth more than 800 billion yuan ($126.98 billion).

The National Development and Reform Commission on Wednesday announced the approvals of project plans and feasibility reports for the 25 projects in cities including Shijiazhuang, Taiyuan, Lanzhou, Guangzhou and Xiamen.

The move marks the government's latest effort to stabilize economic growth when external demand remains weak as the U.S. economy has been struggling to gain traction and Europe is slipping toward a recession.

Forty Chinese cities will have subway systems by 2020, bringing the total track length to 7,000 km, 4.3 times the current length, according to the China Association of Metros.

Railroad equipment manufacturers including railway parts such as steel rails,railway fasteners,rail clip,fish plates,rubber pad,baseplates,cutting machines,drilling machines and construction companies will be the major beneficiaries of the approved infrastructure spending.