S$0.40-MIDS.SI
2 months after Wenzhou’s high speed train collision which killed 40 passengers, 2 metro trains have collided in Shanghai yesterday, injuring more than 500 passengers.
The same reason was cited as the first accident, being the failure of a signalling device made by a joint venture between a Chinese and French company when the first train stalled, causing another to rear-end into it.
And what’s likely to bring even more controversy into the situation is that Reuters reported that some railway staff beat to death a victim of the metro train crash after the victim and another passenger argued with them over the accident.
The railway ministry had put a stop to new orders for high speed trains amidst investigations over Wenzhou’s crash 2 months ago and Midas and its customers were counting on the metro train projects to help fill the void.
Unfortunately, the latest metro train accident means that the worse may not be seen for the railway industry where stocks including Midas have already lost between 60-70% of their stock market value this year.
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