The central bank lowered the five-year LPR interest rate and further lowered the long-term financing cost. On May 20, the one-year LPR interest rate of the central bank remained unchanged, and the LPR interest rate over five years decreased by 15 BP to 4.45%, which was relatively greater than usual. Combined with the document issued by the China Banking and Insurance Regulatory Commission last week that “the lower limit of the interest rate of commercial individual housing loans for the first set of housing shall be adjusted to not less than the quoted interest rate in the loan market of the corresponding term by 20 basis points”, the housing loan financing cost is expected to further decline. In addition, since the introduction of real estate easing policies in many regions of the country this year, the real estate industry is expected to be substantially relaxed.
Infrastructure investment and real estate investment fell in April, or due to the impact of the epidemic. From January to April, infrastructure investment increased by 6.5% year-on-year, and national real estate development investment decreased by 2.7%. The growth rate was slower than that from January to March. We believe that it is mainly due to the impact of the epidemic on logistics and transportation and the pace of construction in many regions.
In the next step, the financing cost will continue to decrease. The orders of China State Construction Engineering Corporation Limited(601668) and other central enterprises in April showed that the growth rate accelerated, indicating that the demand side is still accelerating the expansion, and the fundamentals of the construction industry are expected to continue to improve.
Investment opportunities for earthquake mitigation and isolation under high-quality development: long-term efforts have been made in disaster prevention and mitigation, legislation has been passed, and 20-30 times of space can be expected. Relevant targets such as leading earthquake mitigation and isolation Quakesafe Technologies Co.Ltd(300767) , Zhejiang Tiantie Industry Co.Ltd(300587) “transportation power” have long-term benefits in the rail transit sector: there is a broad demand for the construction of “Urban Agglomeration” on the track, and relevant targets such as Zhejiang Tiantie Industry Co.Ltd(300587) , China Railway Group Limited(601390) , China Railway Construction Corporation Limited(601186) ;
əəəəəəəəəəəəə; Leading infrastructure enterprises with steady main business and mineral resources: Metallurgical Corporation Of China Ltd(601618) , China Railway Group Limited(601390) ; Under the background of dual control of energy consumption, high-quality targets in green power, BIPV and other related fields: Sinosteel Engineering & Technology Co.Ltd(000928) , Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) , Sinoma International Engineering Co.Ltd(600970) .
Risk tips
Infrastructure investment fell sharply; The price of raw materials has risen sharply.
