Business Monitor International


China Infrastructure Report

Published 31 December 2014

  • 143 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
China Infrastructure Report

BMI View : The continued use of monetary and fiscal stimulus measures by the Chinese government at the expense of structural reforms suggests that near-term growth in China's infrastructure and construction sectors could be stronger than previously expected. That said, we still expect China's construction and infrastructure sectors to experience a structural slowdown over the long-term. The key reason for this outlook is our belief that the basis for the increase in fixed asset investment is through the rise in liquidity in China's financial system, an unsustainable investment model due to the diminishing marginal return on expenditure.

Key Trends And Developments

  • Although the Chinese central government is increasingly aiming for economic growth to be driven by private consumption instead of fixed asset investment, the latter - particularly into infrastructure sector - continues to be viewed by the central government as a critical way to generate a satisfactory economic growth rate in the near-term. On November 8 2014, China's state news agency Xinhua reported that the National Development and Reform Commission (NDRC) approved 21 infrastructure projects between October 16 and November 5. These projects have a total investment value of CNY693bn (USD113bn) and consist of five airport and 16 railway projects. The airport projects are located in the provinces of Qinghai, Inner Mongolia, Jilin, Yunnan and Guizhou, while the railway projects are located in regions such as the province of Henan. Following this announcement, on November 17 2014, the NDRC said that it had approved the construction of another five railway projects worth CNY152.7bn (USD24.9bn). The passenger railway lines are expected to run in the south-western provinces of Guangxi and Sichuan, the southern province of Guangdong as well as the western provinces of Gansu and Inner Mongolia.

  • Airports remain high on the government's agenda, which is reflected in our bullish airports...

Table of Contents

BMI Industry View
7
SWOT
9
Infrastructure SWOT
9
Industry Forecast
11
Construction And Infrastructure Forecast Scenario
11
Table: Construction And Infrastructure Industry Data (China 2012-2017)
11
Table: Construction And Infrastructure Industry Data (China 2018-2023)
13
Transport Infrastructure - Outlook And Overview
22
Table: Transport Infrastructure Industry Data (China 2012-2017)
22
Table: Transport Infrastructure Industry Data (China 2018-2023)
23
Table: China - Key Guidelines For Railway Development Fund
28
Table: Major Projects Table - Transport
36
Energy And Utilities Infrastructure - Outlook and Overview
53
Table: Energy And Utilities Infrastructure Data (China 2012-2017)
53
Table: Energy And Utilities Infrastructure Data (China 2018-2023)
54
Table: Major Projects Table - Energy And Utilities
73
Residential/Non Residential Building - Outlook And Overview
88
Table: Residential and Non-Residential Building Industry Data (China 2012-2017)
88
Table: Residential and Non-Residential Building Industry Data (China 2018-2023)
89
Table: Major Projects Table - Residential/Non-Residential Construction and Social Infrastructure
95
Industry Risk Reward Ratings
99
China - Infrastructure Risk/Reward Ratings
99
China's Risk/Reward Ratings
99
Rewards
99
Risks
99
Asia Pacific - Risk/Reward Ratings
100
Developed Markets: Favoured
101
Giants Of Asia: Rewards Sizeable, Risks Sizeable
104
South East Asia: Environment Deteriorating Slightly
105
Table: Asia Pacific Infrastructure Risk/Reward Ratings
107
Market Overview
108
Competitive Landscape
108
Table: EQS Data
108
Company Profile
110
Sinohydro
110
China Communications Construction
114
Shanghai Construction Group
117
China Railway Group
120
China Railway Construction Corporation
124
Global Industry Overview
128
Global Infrastructure Overview
128
Methodology
134
Industry Forecast Methodology
134
Sector-Specific Methodology
135
Risk/Reward Rating Methodology
139
Sector-Specific Methodology
140
Table: Infrastructure Risk/Reward Rating Indicators
140
Table: Weighting Of Indicators
141

The China Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's China Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Chinese infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for China to test other views - a key input for successful budgetary and planning in the Chinese infrastructure market.
  • Target business opportunities and risks in the Chinese infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in China.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:

Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).

Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.

The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).

BMI’s Infrastructure Risk Reward Index

BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and  demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc