Barclays expects the supply and demand situation in the Chinese cement market to improve in 2013, mainly driven by a recovery in infrastructure and real estate market activity from a low base in 2012 (due to the recent rise in cement stocks, this view has gradually become a market consensus). However, there are considerable regional differences in demand growth, new supply, operating rates, and industry concentration. The bank said that the bank's bottom-up pricing power analysis showed that the northeastern and eastern regions of China have the greatest potential for price increases, so the bank is optimistic that its business is targeting the largest number of shares in these regions. The bank gave China Building Materials (3323.HK) and Shanshui Cement (0691.HK) the first increase in holdings, with target prices of HK$12.00 and HK$7.00, respectively.