Specialist
Deputy general manager of SPV at Shanghai Zhenhua Port Machinery Co Ltd
Agenda
- China’s infrastructure construction project implementation in H1 2022 amid stable economic growth, construction initiation, project types and special bonds
- Direction of flow, functions and effects of the RMB 30bn financial debentures
- Infrastructure construction across counties and major projects and industry coverage – H2 outlook
- Revenue growth and projects of major companies
Questions
1.
At the end of last year, the Central Economic Work Conference mentioned explicitly the necessity of moderately advance investment in infrastructure construction. Investment in infrastructure has been regarded as an important starting point for China’s stable economic growth in 2022. How many infrastructure construction projects were initiated in H1 this year? What was the ratio of new infrastructure projects to traditional infrastructure projects?
2.
On 30 June, the State Council executive meeting decided to use some policy-based developmental financial instruments such as financial debentures to raise RMB 300bn. The fund serves as a supplement to the capital of major projects. Besides, the central government may provide some interest subsidies to help special bond projects in attracting capital investments. Some said that infrastructure construction would be well funded. What is your opinion?
3.
It is said that the RMB 300bn financial debentures can leverage about RMB 1.5tn for infrastructure construction. What is your opinion?
4.
Which of the H2 infrastructure construction directions such as smart parking, motorway and underground construction are you more optimistic about?
5.
Why do you think high-speed rail construction and urban flood prevention are also worth attention?
6.
What is your estimate of the infrastructure investment growth rate this year?
7.
What are the main sources of funds for these infrastructure construction projects?
8.
Special bonds are important sources of funds for infrastructure construction projects. This year’s government work report contains the plan for local governments to issue RMB 3.65tn special bonds. Could you review the size of the special bonds issued in H1 this year and the corresponding investment directions?
9.
Will the issuance scale of special bonds vary across regions?
10.
PPP projects and some new types of projects haven’t received many funds raised through special bonds. State-owned enterprises claimed that local governments have accelerated the issuance of special bonds this year. Do you agree?
11.
CCCC probably focuses more on transport-related infrastructure construction. Could you analyse the market share and characteristics of the contractors? In the fields that you are optimistic about, which contractors will undertake more projects and realise an increase in order volume?
12.
Do you know any contractors that specialise in municipal projects?
13.
What do you think of the growth potential of water conservancy projects?
14.
You just said the government will continue to support the water conservancy industry. Do you know any companies that specialise in water conservancy projects?
15.
What do you think of the future of the UHV grid construction industry?
16.
You are optimistic about the construction of municipal engineering, water conservancy and transportation networks. Do you think there will be a large demand for building materials?
17.
China has released guidelines demanding various localities across the country promote urbanisation with a focus on county towns in 2022. The guidelines said that by 2025, major progress will be seen in the drive. What do you think are the main investment fields and sources of capital for infrastructure construction across counties and whether there will be some new measures in the near future?
18.
Do you think there will be some difficulties in the implementation of infrastructure construction across counties? What are the solutions or does it goes well because the projects are led by the government?
19.
What aspects do you think have not been talked about or what other additional information do you want to share?
