Editor's note:
On April 26, the 11th meeting of the Central Financial and Economic Committee was held, which proposed to study the issue of comprehensively strengthening infrastructure construction, emphasizing that infrastructure is an important support for economic and social development, and that it is necessary to coordinate development and security. we will optimize the layout, structure, function, and development model of infrastructure, build a modern infrastructure system, and lay a solid foundation for building a modern socialist country in an all-round way.
The meeting stressed the need to guide market expectations, clearly explain policy guidance and principles, and stabilize market confidence. The meeting pointed out that it is necessary to strengthen the construction of network infrastructure such as transportation, energy, and water conservancy, take networking, network replenishment, and strong chains as the focus of construction, and strive to improve the efficiency of the network.
A number of organizations today interpreted the spirit of the 11th meeting of the Central Financial and Economic Committee. The organization believes that this meeting has comprehensively enhanced the importance of infrastructure, further opened up the medium-and long-term development space of the sector, "moderately ahead of infrastructure investment" is already a stable orientation in the medium term, and the infrastructure sector is likely to achieve high growth this year. It is recommended to pay close attention to investment opportunities in the infrastructure chain.
GF Securities Co., LTD.: "Modern Infrastructure system" helps to balance the medium-term investment rate
GF Securities Co., LTD. said in a research report that the meeting of the Central Financial and Economic Commission involves the top-level design of major economic issues "related to the fundamental and long-term", so the spirit of each meeting is extremely important. The theme of this meeting is infrastructure construction, which sets a relatively high tone for infrastructure construction. In terms of the spirit of the meeting"moderately ahead of infrastructure investment" has been a stable orientation in the medium term.
Chart: previous issues of the Central Committee of Finance and Economics
Source: China Government Network, China International Capital Corporation Research Department
CICC:Infrastructure has been raised to an important position related to economy and security, which will help to enhance the hub of infrastructure growth in the medium term.
CICC believes that on the basis of the spirit of this meeting, combined with the 23 measures recently issued by the central bankIt will help to ensure the joint efforts of infrastructure projects and funds, and speed up the landing of major construction projects during the 14th five-year Plan and the formation of physical workload.Judging from the recent situation, the growth rate of broad infrastructure investment in the first quarter of this year reached 10.5%, the highest since 2018 (not taking into account the high infrastructure growth brought about by a low base in the first half of last year). Statistics Bureau data show that the growth rate of government budget funds invested in the first quarter of this year reached 34.7%, with obvious pre-expenditure characteristics, and the growth rate of subsequent capital expenditure may slow down. CICC believes that if the epidemic can be alleviated in May this year, combined with the introduction of recent favorable policies, physical investment in infrastructure is expected to be compensated to a certain extent by the end of the year.
Guosheng Securities: the importance of infrastructure investment has increased in an all-round way, and the medium-and long-term space has been further opened.
Guosheng Securities said in a research report that the meeting comprehensively enhanced the importance of infrastructure investment, further opened up the medium-and long-term space of relevant sectors, and continued to suggest that infrastructure is likely to achieve high growth this year, with an annual growth rate of about 8% or more.Investors are advised to pay close attention to investment opportunities in the infrastructure chain:Transportation, energy, water conservancy, pipe networkEtc., in whichSecurity infrastructure, such as critical information infrastructure, disaster prevention and control, infectious disease prevention and control, are of particular concern..
Zheshang Securities: raise the forecast of infrastructure investment (excluding electricity), and the year-on-year growth rate is expected to reach 7%.
With a combination of policy, rush and base impact, we have raised our year-on-year forecast for infrastructure investment (excluding electricity) to 7 per cent (previously forecast 4 per cent) Q3 or maintain double-digit growth, said Zheshang Securities. Supported by new energy infrastructure and new infrastructure, infrastructure (including electricity) grew at a year-on-year growth rate of about 9%.
What are the investment opportunities in the infrastructure sector in the Hong Kong stock market?
So, what are the investment opportunities for the infrastructure industry chain in the Hong Kong stock market? According to the growth and price-to-book ratio of the company in 2021, Futu Information has simply combed the companies with larger market capitalization in the Hong Kong stock market, which are only for reference by cattle friends, not recommended as individual stocks.
Edit / irisz, lydia