(Yicai Global) Feb. 27 -- Beijing-Shanghai High Speed Railway, which operates the profitable high-speed rail link between China's capital and its biggest city, plans to bring in private capital through an initial public offering of shares.

BSHSR has started preparing to go public on China's mainland, the People's Daily newspaper reported yesterday, citing state-owned China Railway. The Beijing-based unit is expected to complete pre-listing tutoring this year, according to a person in charge at its parent company.

The listing move is an important step toward mixed ownership reform and optimizing the capital structure of national rail companies, the source added. China's mixed ownership reform allows private capital to invest in state-owned firms.

Since 2011, the line has connected the economic powerhouses of northeastern Beijing-Tianjin-Hebei with the Yangtze River Delta area, transported 940 million passengers over a 1,300-kilometer route, and has become one of the country's most profitable high-speed routes.

Investment bank CSC Financial has started giving pre-listing advisory services to the company, the Beijing bureau of the China Securities Regulatory Commission said on its website yesterday. 

Founded in 2007, BSHSR's shareholders include China Railway, Ping An Trust and the National Council for Social Security Fund.

Editor: Emmi Laine