The train hit the record speed on a section between Zaozhuang City in Shandong and Bengbu City in Anhui, part of the world's longest high-speed rail line connecting Beijing and Shanghai. The line is expected to open in 2012.
The train's previous record was 416.6 km/h set on Sep. 28 during a test between Shanghai and Hangzhou.
"This not only marks a milestone in the construction of the Beijing-Shanghai high-speed railway but also is a major achievement of China's technological innovation," said Wang Yongping, a railway ministry spokesman.
As of this year China has 7,055 kilometers of high-speed railway in service, the most in the world, with trains running between 200 and 350kph between major provinces and cities. The first high-speed line linking Beijing with the neighboring port city of Tianjin was opened during the Beijing Olympics in 2008.
The Chinese government is to spend RMB800 billion (US$120 billion) to double the length of high-speed track in its bid to cut travel time between almost all of China's major cities to less than eight hours, increase traffic capacity and boost regional economic ties, according to Shanghai Daily.
Travelers will be able to slash the travel time from the capital to Shanghai to four hours by the bullet trains.
Concerns have been raised over ticket prices however, with ticket prices on Shanghai's high-speed links more expensive by up to 50 percent than older trains, drawing criticism from some travelers, especially those in lower-income groups.
The advent of the high-speed railways has meant some express trains running on older track have been reduced or cancelled, leading to fewer rail travel alternatives for those who struggle to afford the more costly new trains.
At the opening of the Shanghai-Hangzhou line in October, rail operators offered a free return trip between the two cities for one day. Critics doubted however that many working class people would be able to afford the 160 yuan (US$24) return ticket on a daily basis.