HK$500 million to go toward smart card expansion
Hong Kong’s Beijing Development announced that it plans to invest HK$500 million from its cash reserves to build its smart card and underground railway IT system businesses in the capital, Beijing, and to expand that same system to other cities. The company has already implemented a wide spread smart card scheme in Beijing as part of the capital’s efforts to prepare for the 2008 Olympic Games. Since the municipal government allowed a 60% discount on bus fares for smart card holders riding the buses, the number of cards has almost doubled. The company is also negotiating with the supermarket, convenience store operators and fast-food stores, trying to sell its smart card payment system.
Beijing Development to invest HK$500m for Smart Card expansion
Jun. 26, 2007–Beijing Development (Hong Kong) <154> announced that it plans to invest HK$500 million from its cash reserves to build its smart card and underground railway IT system businesses in the capital and to expand to other cities together with its joint venture partner.
The company implemented a wide spread Smart Card scheme in Beijing as part of the capital’s efforts to prepare for its hosting of the 2008 Olympic Games.
Beijing Development is aiming at Tianjin in the Bohai Bay area and cities in Southwest China such as Chengdu to build the transit railways.
Earlier this year, the company sold its 4.72 % stake in GEM board-listed Xteam Software and cashed in HK$132 million, thus its total shareholding is reduced to approximately 30%.
The number of cards almost doubled since the municipal government allowed a 60% discount on the Smart Card for the card holders riding buses.
The company is negotiating with the supermarket, convenience store operators and fast-food stores, trying to sell its Smart Card payment system.