Chinese construction company admits high reception costs

The China Railway Construction Corporation (CRCC) on Wednesday admitted that its spending on receptions in 2012 was high, vowing to take measures to control the costs. The statement came after reports detailing its 837-million-yuan (135 million U.S.dollars) reception fees led to public criticism targeting the management of the Shanghai- and Hong Kong-listed state-run company. The costs accounted for 0.17 percent of CRCC's 2012 revenues, an amount lower than what's prescribed in relevant regulations but still high in terms of absolute figures, the company said. Reception fees have increased in accordance with operational needs, as the company has expanded fast and market competition has increased, it said. The total cost was an aggregation of more than 11,000 CRCC units scattered in over 60 countries and regions, with the spending of each unit averaging 76,000 yuan, it said.