China's Ministry of Railways (MOR) was 1.98 trillion yuan ($294.87 billion) in debt at the end of the first quarter of 2011, causing its asset-liability ratio to reach 58.24 percent, CNTV reported Tuesday.

The MOR said it was to issue short-term financing bonds of 20 billion yuan on July 21 to support railway construction,purchase of locomotives and capital turnover.

This is the third time the ministry had issued such bonds this year. It raised 20 billion yuan and 15 billion yuan in the first two issuances, respectively.

Previously this year, the ministry also issued super-short-term financing bonds of 10 billion yuan three times and mid-term notes of 20 billion yuan.

It would have raised as much as 1.05 trillion yuan after the July 21 issuance.

The ministry plans to invest 745.5 billion yuan for fixed assets in the railway sector in 2011, it said in its prospectus.

China's railway fixed-asset investment came to 842.65 billion yuan in 2010, up 19.6 percent year-on-year.

China completed eight high-speed railways of 1,554.3 km in 2010, and construction started on 18 high-speed railways that same year.