Multiple sources of funds, including finance and government, are being mobilized to support urban renewal.

Recently, the central government allocated fixed subsidies to support urban renewal actions in some cities, and the first batch of 15 cities have been selected.

This year's trillion-yuan long-term special bonds will also include some urban renewal projects.

In addition, many cities have issued policies to widen the sources of funding and encourage more financial and social capital to invest in urban renewal through methods such as discounted loans.

Looking at the direction of fund support, in addition to the renovation of urban villages and old residential areas, the renewal of underground pipe networks and sewerage pipe networks are also a focus.

GTJA believes that government policies will continue to strongly support the underground pipe network industry. The demand for urban drainage pipe network expansion, sewage treatment pipelines construction, natural gas replacement, and underground comprehensive pipe gallery construction is expected to continue to increase, which will boost the future development of related companies in the industry chain.

Hong Kong stock companies related to pipe network concept:

China Lesso (02128): China Lesso has established more than 30 advanced production bases, which are located in 18 provinces in China and overseas countries. In 2020, the CR3 of plastic pipes was 21.88%, of which China Lesso held a 16.26% market share, far leading other companies in the industry with significant scale advantages. The "Lesso" brand of China Lesso dominates China's market for plastic pipes and fittings, with products widely used in fields such as water supply, drainage, gas supply, power and communication, floor heating, fire protection, and agriculture.