Youth Hostel or budget hotel in Guangzhou

No such rules, it’s just because that foreigners would be more accustomed to 4 or 5 star hotels for they have high quality and very nice service.
I can’t find youth hostels near the railway station, but I guess this one may meet your demands: GZ Baiyun City Hotel: no. 179, West City Ring Road (in the east of the station square) and it costs no more than CNY300 for a standard room.