Market Overview
As of the closing on March 4, this week, the Shanghai Composite Index fell 0.11% to close at 344765 points, the Shenzhen composite index fell 2.93% and the gem index fell 3.75%. In terms of sectors, real estate rose 1.23%, transportation rose 3.65%, infrastructure rose 1.04% and cement rose 0.51%.
Sichuan caizhou viewpoint
When the two sessions were held, we focused on new energy infrastructure. On March 5, Premier Li Keqiang delivered a report on the work of the government in 2022. The report points out that it is planned to arrange 3.65 trillion yuan of special bonds for local governments this year, which is the same as last year, but 1.2 trillion yuan of special bonds were not used in the fourth quarter of 2021, which means that in fact, the total amount of special bonds this year is 4.85 trillion yuan, which is nearly double that of the special bonds actually implemented in 2021. In terms of the issuance of special bonds, the growth of infrastructure investment is guaranteed; At the same time, the report emphasizes the appropriate advance of infrastructure investment and "funds follow the project". From the rhythm, a number of key infrastructure projects are expected to start first, and the second quarter will become an important period for the infrastructure sector. Therefore, the growth rate of infrastructure performance in the whole year is expected to be high in the first place and low in the second. The report also pointed out that we should promote carbon neutralization in an orderly manner and implement the action plan for carbon peaking. This means that 2022 is an important year for the implementation of double carbon work. While doing a good job in carbon reduction of traditional energy, the planning and construction of new infrastructure and supporting regulatory power supply represented by wind power and photovoltaic will also become the focus of double carbon work. From the perspective of steady growth and simultaneous realization of the dual carbon goal, we suggest focusing on investment opportunities related to new energy infrastructure.
Industry dynamics
Infrastructure related policies in the government work report:
1. It is planned to arrange 3.65 trillion yuan of special bonds for local governments this year. We will strengthen performance orientation, adhere to "funds follow projects", reasonably expand the scope of use, support the follow-up financing of projects under construction, and start a number of qualified major projects, new infrastructure, transformation of old public facilities and other construction projects. Private investment accounts for the majority of investment. We should give full play to the role of leading major projects and leveraging government investment, improve relevant support policies, and fully mobilize the enthusiasm of private investment.
2. Promote the development of digital economy. Strengthen the overall layout of Digital China construction. Build digital information infrastructure, promote the large-scale application of 5g, promote the digital transformation of industries, and develop smart cities and digital villages. Accelerate the development of industrial Internet, cultivate and expand digital industries such as integrated circuits and artificial intelligence, and improve the innovation and supply capacity of key software and hardware technologies. Improve the governance of digital economy, release the potential of data elements, and better enable economic development and enrich people's lives.
3. Actively expand effective investment. Focusing on the major national strategic deployment and the 14th five year plan, we will moderately advance infrastructure investment. We will build key water conservancy projects, comprehensive three-dimensional transportation networks, important energy bases and facilities, accelerate the renewal and transformation of urban gas pipelines and other pipe networks, improve flood control and drainage facilities, and continue to promote the construction of underground comprehensive pipe corridors. The central government allocated 640 billion yuan for investment. Government investment is more inclined to people's livelihood projects, and more efforts are made to make up for weaknesses in the field of social people's livelihood.
4. Improve the quality of new urbanization. We will promote urban renewal in an orderly manner, strengthen the construction of municipal facilities and disaster prevention and mitigation capacity, carry out the investigation and rectification of potential safety hazards of old buildings and facilities, start the transformation of a number of old urban communities, and promote the construction of barrier free environment and aging adaptation. Improve the system of providing basic public services in permanent residence. Strengthen the infrastructure construction of the county. Steadily promote the construction of urban agglomeration and metropolitan area, and promote the coordinated development of large, medium and small cities and small towns.
5. Orderly promote carbon peak and carbon neutralization. Implement the carbon peak action plan. Promote the energy revolution, ensure energy supply, based on resource endowments, adhere to the first establishment and then destruction, and make overall plans to promote the low-carbon transformation of energy. Strengthen the clean and efficient utilization of coal, orderly reduction and substitution, and promote the transformation of energy conservation and carbon reduction, flexibility and heating of coal and electricity. Promote the planning and construction of large-scale wind and solar power bases and their supporting regulatory power sources, and improve the consumption capacity of the power grid for renewable energy power generation.
6. Continue to ensure people's housing needs. Adhere to the positioning that houses are used for living rather than speculation, explore new development models, adhere to the simultaneous development of rental and purchase, accelerate the development of long-term rental housing market, promote the construction of affordable housing, support the commercial housing market to better meet the reasonable housing needs of buyers, stabilize land prices, house prices and expectations, and promote the virtuous cycle and healthy development of the real estate industry due to urban policies.
(source: China government website)
Risk warning: the macro policy is not as expected; Raw material prices rose more than expected.
