The construction sector fell this week, underperforming the market, and the construction segment generally fell. The national development and Reform Commission will expand effective investment in four aspects, including promoting infrastructure construction.
The overall decline in construction underperformed the market, and the segments generally fell: this week, the Shenwan construction index closed at 2206.9 points, down 5.5% month on week, underperforming the market. The industry's average price to book ratio was 1.0 times, up slightly from last week. The sub sectors generally fell, with the consulting sector falling by 2.3%, the smallest decline; Decoration sector fell 9.0%, the biggest decline.
The national development and Reform Commission will expand effective investment in four aspects: promoting infrastructure construction: on April 15, the national development and Reform Commission held a press conference to introduce the current results of stabilizing investment and the focus of expanding effective investment. In terms of expanding effective investment, the national development and Reform Commission will do a good job in the following four aspects: first, focus on key areas, including infrastructure construction, manufacturing and high-tech industries, as well as making up for weaknesses in social and people's livelihood; Second, strengthen the guarantee of capital elements, urge local governments to speed up the construction progress of special bond projects, form physical workload as soon as possible, and strengthen the guarantee of land, energy and other elements; Third, accelerate the implementation of the project, urge local governments to speed up the implementation of various approval procedures for the project, and promote the smooth implementation of the project construction; Fourth, stimulate the vitality of social investment, implement and improve the docking mechanism of social capital investment and financing cooperation, revitalize stock assets and promote the healthy development of REITs in the field of infrastructure. The scale of special bonds of 3.65 trillion yuan in 2022 and the special bonds of about 1.2 trillion yuan issued in the fourth quarter of 2021 are expected to form an important support for this year's investment growth. There is also large investment space and more investment growth points in promoting the construction of projects in the "double carbon" field, issuing emerging industries and implementing new urbanization.
Infrastructure investment continued to grow, and real estate investment picked up slightly: from January to February, fixed asset investment was 5.4 trillion, an increase of 12.2% year-on-year. Among them, the completed investment in infrastructure and real estate development was 1.3 trillion and 1.4 trillion respectively, with a year-on-year growth rate of 8.6% and 3.7% respectively. Infrastructure investment continued the growth trend in December, and the year-on-year growth rate was significantly improved; After four consecutive months of decline, real estate investment also ushered in signs of recovery. In infrastructure construction, the investment in power, transportation and public utilities was 0.21 trillion yuan, 0.48 trillion yuan and 0.57 trillion yuan respectively, with a year-on-year growth rate of 11.7%, 10.5% and 6.0% respectively. From January to February, the investment performance of the three sub projects was good, with a large year-on-year increase in power and transportation. The investment in public water conservancy also ended its continuous decline and ushered in growth. The main tone of steady growth in 2022 is expected to drive the continuous improvement of infrastructure investment.
Construction and completion fell year-on-year, and the decline of land transaction price was higher than that of transaction area: from January to February, the planned land transaction area of 100 large and medium-sized cities totaled 150 million square meters, a year-on-year decline of 26.7%; The average transaction floor price is 1386 yuan / square meter, with a decrease of 1273.5 yuan / square meter. The decline of transaction price is higher than that of transaction area. The construction, completion and sales areas were 150, 120 and 160 million square meters respectively, with a year-on-year growth rate of - 12.1%, - 9.8% and - 9.6% respectively. The year-on-year growth rate of new construction from January to February narrowed by 19.0 PCT compared with December 2021, mainly because most projects started construction at the beginning of the year; The completion growth rate dropped significantly compared with December, mainly because the beginning of the year was not the peak of completion, and real estate enterprises used limited funds for new projects. From January to February, the decline of commercial housing sales area narrowed, but the sales unit price decreased significantly, indicating that the current real estate sales situation is still poor, and the real estate easing policy needs to be further strengthened.
Key recommendation
Key recommendation: infrastructure sector, Shenzhen Capol International&Associatesco.Ltd(002949)
Main risks of rating
Risk tip: manufacturing investment slows down, assembly promotion is less than expected, and macro liquidity is tightened.
