Industry fundamentals to improve in the second half of hong kong-listed still

Industry fundamentals to improve in the second half of hong kong-listed still

Benefit from the second quarter began to local governments launch steady growth plan, since this year the downward trend in investment growth has largely stopped. Comprehensive institutions speculation, July 1 to China's fixed asset investment year-on-year growth of between 17.2% and 17.4%, and the accumulative and in the first half of the roughly equal.

On June 10, the state council issued the about on steady growth promoting the reform and restructuring livelihood policies and measures to carry out the situation to carry out comprehensive supervision notice, in the second half of the policies and measures to carry out the strength can reach the designated position, than the first half than the first half of the year effect. Local government vigorously implement investment steady growth, steady growth in various provinces investment plan greatly increased. In the second quarter of the enterprise long-term loan proportion, year-on-year growth of 83.7%, high support investment growth in the third quarter. In the second half of the railway investment and shanty towns transformation investment is expected to accelerate. Outlook in the second half of the change of the investment growth, in judgment recovered, the governments everywhere and recent intensive measures a steady growth.

In the second half of the investment growth picks up, the demand for hong kong-listed can have a positive impact?

Construction industry is one of the main categories of steel consumption in China, accounting for about 50% of the total steel consumption, consumption of steel parts are mainly housing construction and infrastructure construction. And the real estate construction dominate foshan steel structure material demand, real estate is the primary factors influencing the fixed assets investment, new housing average price has reduced 2 month-on-month, 14.1% year-on-year growth in the first half of the real estate development investment, 12.5% in June, has great influence on steel building new starting area is greatly reduced by 16.4%, compared to the same lack of new projects will affect the subsequent steel consumption growth. Real estate investment will continue to run low, but paid huge losses.

Current is relatively good, policy makers to overweight PengGai support strength, China development bank set up housing finance division, key support turn shantytowns into new housing areas, and urban infrastructure and related engineering construction. Into the national plan of shanty towns transformation project, the national development bank borrowing and capital can be in the same proportion in place within the year. Steady growth policies introduced is dense, the current railway land comprehensive development scheme has been submitted to the state council, is expected in the near future. Infrastructure construction will also be an important category of pulling steel demand. The construction of urban rail transit and intercity railway or will replace the high iron into the next round of railway construction and promote the growth of the important category in steel demand. To remain relatively large-scale railway and highway construction, but the surge to a lower, the incremental demand for steel co., LTD.

Real estate investment is still become a constraint on investment growth is the biggest strength, but from the point of view of construction, in the second half of fiscal capital contribution or stabilizing force for investment growth, hong kong-listed downstream demand is still growing, and steel production capacity is still steady progress, industry fundamentals to improve in the second half of hong kong-listed still.