Almost all subways in Hong Kong lose money. Why can the subway make money?

The ticket sales revenue of Hong Kong subway only accounts for 15%, and the real profit is not through the subway but through the property. By planning the land price along the subway,

The procedure is as follows: when building a new line, the Hong Kong government first makes a plan and thinks it is necessary to build this new line, and then makes a feasibility study to find out how the funding gap is. For example, it costs HK$ 50 billion to build a subway. What will be the future income and expenditure? In the end, there may be a funding gap of HK$ 20 billion, so fill this funding gap. "

Then the MTR Corporation began to participate and found out some plots. The government will develop these plots for the subway, and the government will calculate the future profits, which should be able to fill the funding gap for subway construction.

You need to know how low the price of the lines along the subway is.

The mainland is actually the same, but in a different way. It is the subway company that borrows money, not the subway company that collects money. The money along the line is collected by the state finance and then subsidized to the subway operation.