April 8 morning trading, A-share engineering construction plate individual stocks rose by the daily limit. As of the morning close, Xinjiang Jiaotong Construction, Beixin Road Bridge, Sinochem Rock and soil, Tengda construction limit. Large infrastructure central enterprises also showed strong performance, with China Power Construction up 5.22 per cent, China Rallway up 4.17 per cent and China Communications and Construction up 4.08 per cent.

Heavy machinery stocks in Hong Kong also rose sharply as of press time.$China Rallway (00390.HK) $Increase by more than 7%$China Railway Construction Corporation (01186.HK) $Up nearly 6%$China Communications Construction (01800.HK) $It rose by more than 3%, and China Construction International rose by nearly 2%.

On the evening of April 7, China Rallway disclosed the first-quarter operating data. Among them, the value of newly signed business contracts for infrastructure increased by 94.1% compared with the same period last year, attracting the attention of the industry. Industry insiders believe that the data greatly exceeded expectations. Although the company did not disclose the start of the project, it still effectively boosted market confidence.

A substantial increase in the value of infrastructure contracts

According to the announcement, China Rallway's newly signed contracts totaled 605.74 billion yuan in the first quarter, an increase of 84.0 percent over the same period last year. Among them, 1591 new contracts were signed for infrastructure construction business, with a contract value of 543.45 billion yuan, a year-on-year increase of 94.1%.

Some brokerage personages said that the data released by China Rallway is really eye-catching, in the current market situation, the catalytic effect on the plate is obvious.

A Taurus reporter in the China Securities News noticed that there was also a market view that China Rallway disclosed only the signing of the contract and did not represent the volume of construction.

In this regard, the reporter called China Rallway, the company said that the newly signed project requires a preparation period of 1-3 months, and after the project pays the reserve, the company will start work one after another.

On the evening of the 7th, another piece of data on China's total infrastructure investment spread in the market, which also aroused great concern in the industry.

According to the statistics of Everbright Securities, 24 provinces have disclosed plans for major projects in 2022, involving an annual investment of 12.7 trillion yuan.

Investment acceleration

In fact, since the beginning of this year, there are obvious characteristics of fiscal policy launching ahead of schedule, including the issuance of special debt quota in advance. As an important starting point for stable growth, infrastructure investment has been placed in a more prominent position, which is also a common consensus in the industry.

Infrastructure investment rose 8.1 percent in the first two months of this year compared with the same period last year, 7.7 percentage points faster than in 2021, according to the National Bureau of Statistics.

As for the company, the newly signed contract value of China Nuclear Construction in the first quarter was 29.065 billion yuan, an increase of 19.4% over the same period last year. In the first quarter, the construction industry of Beixin Road and Bridge won the bid and signed 12 projects with a contract amount of 5.759 billion yuan.

Ping an Securities said that judging from the local major project construction plans in 2022, the investment plan of most provinces in 2022 showed a high single-digit to double-digit growth compared with the previous year. Investment in shanghai, Wuhan, Guangdong, Zhejiang and Anhui is planned to grow by 12 per cent per cent per year.

Ping an Securities said that since the fourth quarter of last year, the central government has clearly set the task of stabilizing growth to expand effective investment and moderately advance infrastructure construction. Since the beginning of the year, all localities have actively promoted the landing of policies. Judging from the government work reports of the local and central conferences in 2022, the investment plans for major projects in various provinces and cities, and the progress of local special debt issuance, all confirm that infrastructure investment is the key direction of local efforts this year.

At the same time, the number of major projects in various localities has increased one after another. A few days ago, Henan held the construction activities of the fourth phase of "three batches" of projects, with a total investment of 436.4 billion yuan, 1009 projects of "first batch of construction" with a total investment of 632.8 billion yuan, and 785 "first batch" projects with a total investment of 422.7 billion yuan.

A few days ago, Heilongjiang also held a ceremony for the start of key projects, with a total of 1902 key projects, including 1590 at the provincial level and 1590 at the municipal level.