Adhere to the principle of "funds and elements follow the project", and the capital construction funds are sufficient
From January to February, the national general public budget expenditure was 3822.7 billion yuan, a year-on-year increase of 7%. Among them, the central general public budget expenditure at the same level was 389.6 billion yuan, a year-on-year increase of 4.6%; Local general public budget expenditure was 3433.1 billion yuan, a year-on-year increase of 7.3%. Transportation expenditure was 180.2 billion yuan, a year-on-year increase of 14%.
In addition to the general public budget expenditure, the issuance of new special bonds by local governments has increased significantly. This year, the state plans to arrange 3.65 trillion yuan of special bonds for local governments, adding that the physical workload of 1.2 trillion yuan of special bonds in the fourth quarter of 2021 will be transferred to this year. Therefore, a total of 4.85 trillion yuan of special bonds can be used for specific projects this year. From January to February, 1077.6 billion yuan of new bonds were issued nationwide, including 2001 billion yuan of general bonds and 877.5 billion yuan of special bonds. China issued 128.4 billion yuan of refinancing bonds, including 34 billion yuan of general bonds and 94.4 billion yuan of special bonds. In total, China issued 1206 billion yuan of local government bonds, including 234.1 billion yuan of general bonds and 971.9 billion yuan of special bonds. These investments will stimulate more social capital to participate in the market and provide strong support for expanding effective investment.
In addition, the CSRC is studying and formulating the raising rules of infrastructure REITs. With the continuous improvement of REITs system and the gradual increase of new products, the infrastructure industry will attract more social capital to participate in investment and usher in new incremental funds.
From January to February, the growth rate of infrastructure investment accelerated and achieved a good start
According to the investment data from January to February released by the National Bureau of statistics, infrastructure investment increased by 8.1% year-on-year, 7.7 percentage points faster than the whole year of 2021, the number of new projects invested increased by 1.1 times year-on-year, the planned total investment of new projects increased by 62.8%, the national budget funds increased by 33.9%, and the self raised funds increased by 13.2%. With the sustained effectiveness of the national policy of stabilizing growth and investment, the investment in the next stage is expected to maintain a good growth trend. It is expected that the growth rate of infrastructure construction in the first half of the year is expected to continue at a high level, providing effective support for the stable growth of Macro-economy.
Investment view
At present, the tension between Russia and Ukraine continues, the price of bulk resource products continues to be high, and the market risk aversion has not subsided. In the short term, we will continue to pay attention to the investment opportunities related to steady growth, such as the undervalued sectors of cement, steel and iron, new building materials and other raw materials in traditional infrastructure construction, prefabricated buildings and upstream raw materials; After the risk aversion subsides, new infrastructure sectors with strong performance growth and certainty can be configured, such as wind power, photovoltaic and other energy infrastructure, energy storage, UHV, digital infrastructure, etc.
Risk tips
Covid-19 epidemic risk of large-scale recurrence; Risk of raw material price rise exceeding expectations; The project falls short of the expected risk, etc.
