Index
On Monday, March 7, 2022, as of the closing, the Shanghai Composite Index fell 2.17% to 337286 points, the Shenzhen composite index fell 3.43%, the gem index fell 4.30%, and the turnover between the two markets reached 1024.6 billion.
Comments
The continuous tension in Russia and Ukraine led to the continuous rise of precious metals and bulk commodity prices, the rise of market risk aversion, and the sharp decline of the three indexes. As a safe haven sector, infrastructure fell less today, which mainly benefited from the market’s expectation of the certainty of infrastructure development this year. In the government work report, moderately advanced infrastructure investment was proposed again, and a number of qualified major projects, new infrastructure, transformation of old public facilities and other construction projects are expected to start first in the second quarter. At the same time, the national development and Reform Commission also said that it would do a good job to fully mobilize the investment enthusiasm of market players, further relax the access fields and reduce the investment threshold, Let social capital play a full role in this field, increase credit support for new infrastructure construction, innovate financial instruments and broaden financing channels, especially create more favorable conditions for private enterprises to participate in new infrastructure construction. In the short term, the market will still be disturbed by the external environment, but China’s economy will operate within a reasonable range with good foundation and conditions. In the long term, we are still optimistic about investment opportunities in infrastructure related sectors. We suggest paying attention to digital infrastructure, new energy infrastructure, etc.
Industry dynamics
On March 7, the Information Office of the State Council held a press conference on “upholding stability and seeking progress while maintaining stability, and promoting new progress in high-quality development”. At the conference, Lin nianxiu, deputy director of the national development and Reform Commission, said that the national development and Reform Commission would speed up the construction of projects in key areas: first, accelerate the improvement of network facilities. Efforts will be made to implement the infrastructure network improvement project of small and medium-sized cities in central and Western China and the 5g integrated application demonstration project, so as to bridge the digital divide and fill the application shortcomings. Second, unified layout of node facilities. Accelerate the construction of 10 national data center clusters, and steadily and orderly promote the construction of national new Internet switching centers and national Internet backbone direct connection points. Third, deploy forward-looking facilities in advance. Accelerate the implementation of the preliminary conditions of the project, promote the implementation, implementation and construction of major scientific and technological infrastructure projects specified in the 14th five year plan, timely start a number of pre research projects, and continuously improve China’s original innovation ability. (website of the Information Office of the State Council)
Company dynamics
Center International Group Co.Ltd(603098) ( Center International Group Co.Ltd(603098) ): Center International Group Co.Ltd(603098) announcement on winning the bid for major projects: the company has recently received the letter of acceptance, confirming that the company and suntexing (Shenzhen) Green Energy Technology Co., Ltd. (hereinafter referred to as “suntegreen energy”) have won the bid for the roof distributed photovoltaic power generation project of the ownership company of Shandong heavy industry group. Among them, sente green energy is a wholly-owned subsidiary of the company. The bid winning amount of the project is 799780217 yuan, accounting for 25.37% of the company’s audited operating revenue in 2020. After the successful project is signed and successfully implemented, it is expected to have a positive impact on the company’s future operating performance. （iFinD）
Risk warning: the macro policy is not as expected; Raw material prices rose more than expected.
