Research and Markets: China Infrastructure Report Q2 2012
March 15 2012 - 12:19PM
Business Wire
Research and Markets
(http://www.researchandmarkets.com/research/d0fa4a/china_infrastructu)
has announced the addition of the "China Infrastructure Report Q2
2012" report to their offering.
BMI View: Our view on the unwinding of spending on railways is
playing out, with the latest figures emerging from China suggesting
an 80% reduction in high-speed rail spending year-on-year
(y-o-y).In BMI's latest Special Report China 2012: From Miracle to
Meltdown, it is clear how much the infrastructure and macroeconomic
dynamics in the country are intrinsically tied and how the
unwinding of the former is corroborating our below-consensus view
on the latter and vice versa. Key themes for China's infrastructure
sector this quarter include:
- In light of steep falls in the residential and commercial
construction front we have revised down our 2012 China construction
industry value forecast to 5% real growth. We are maintaining our
forecasts for infrastructure and its sub-sectors as we see the
trend that we have in place since June 2011 playing out. We
anticipate moderation in the transport infrastructure industry
value growth and growth in energy and utilities.
- Notwithstanding major changes to regulations and pricing, we
anticipate that there will be an increase in natural gas power
plant construction in the coming years given growing Chinese energy
demand and Beijing's desire to shift energy consumption away from
coal and towards natural gas. Natural gas related infrastructure
(pipelines and LNG) will flourish as a result, hence our bullish
outlook for the sector.
- We maintain our muted forecasts for railways and expect to see
a deceleration in industry value growth starting this year and
running to the end of our forecast period. New data from the
Ministry of Railways corroborates this view, indicating a steep
unwinding of spending.
- Our forecasts for a revival in airport construction are
supported by the announcement of a new mega-airport project - to
replace the Beijing Nanyuan Airport - should be completed by
2017.
Read more inside China Infrastructure Report Q2 2012
Companies Mentioned:
- Sinohydro
- China Communications Construction
- Shanghai Construction Group (SCG)
- China Railway Group
- China Railway Construction Corporation (CRCC)
For more information visit
http://www.researchandmarkets.com/research/d0fa4a/china_infrastructu