This report tries to make a detailed analysis from the definition and composition of infrastructure investment, the advantages of China's infrastructure organization in realizing cross cycle economic regulation, and the observation dimension of infrastructure investment. We can see from the formula of calculating GDP by expenditure method that infrastructure investment can drive GDP growth to a great extent. Therefore, in the period of economic downturn, the purpose of boosting the economy can be achieved by increasing infrastructure investment. Through comparison with the United States, it is found that the advantages of our country in driving the economy through infrastructure investment lie in capital, land expropriation and low labor price; In the observation dimension of infrastructure investment, we elaborate on how to observe the government's current willingness to invest in infrastructure and several observation indicators of infrastructure. Through historical data fitting, we find that we can understand the specific situation of current infrastructure investment by tracking the announcement of new orders / major contracts won by listed companies related to infrastructure; The change of infrastructure investment can be observed in advance by observing the PMI index of construction industry, but this index is also disturbed by the situation of real estate market, and sometimes there will be some deviation; By tracking the sales volume of excavators in China, we can also grasp the situation of infrastructure investment. However, according to the economic cycle theory, the investment in mechanical equipment is often increased after the economy improves, resulting in the sales index of excavators lagging behind the infrastructure investment; At the same time, infrastructure investment is closely related to downstream petroleum asphalt consumption. From the fitting of historical data, the apparent consumption of petroleum asphalt is highly correlated with the growth rate of infrastructure investment, which can be used as a synchronous observation index of infrastructure investment.
Finally, in the source of capital construction funds, we introduced the relevant knowledge of national budget funds and special bonds in detail. In the next part, we will introduce the investment and financing history of China's capital construction in detail. We can learn from history!
