China Infrastructure Report

Published 02 April 2015

  • 143 pages
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  • Includes 3 free updated quarterly reports
 
$1,295.00
China Infrastructure Report

BMI View : Beijing's acceptance of a 'new normal' growth reinforces our view that China's infrastructure sector will continue to face a structural slowdown. Nonetheless, China remains an attractive market, as the government's 'Belt and Road' initiative provides opportunities for transport elated projects being available. Efforts to reform the sector and attract private sector funding also bodes well for the sector.

Key Trends And Developments

  • In line with our outlook of a gradual slowdown in China's construction industry, Beijing's acceptance of a slower GDP growth of around 7% as the 'new normal' reinforces our view. We forecast the construction industry to grow by 6.3% in 2015, a slowdown from 6.8% in 2014.

  • The weakened outlook is largely due to a more conscious effort to steer the economy towards a more consumption-led model, as the government has been relying on debt-fuelled investment in infrastructure to boost the country's economy.

  • Nonetheless, we believe the government will still rely on monetary and fiscal measures targeted at infrastructure development to prop up GDP growth, albeit less so compared to past years.

  • Despite the slowdown, China will remain an attractive market, with the government's 'Belt and Road' initiative, providing a boost to the transport segment. We also see opportunities in the railway sector and expect continued investment in the sector during 2015.

  • Beyond 2015, we believe China will continue to face a structural slowdown in the sector and expect the sector to expand by an annual average of 4.3% between 2016 and 2019 in real terms.

  • We believe reforms are also a long-term positive for the sector and significant progress on reforms in the railway segment will bode well for the segment.

  • That said, such reforms will take years to gain traction due to three key factors: the time taken for private participation reforms to mature and be fully implemented, the general unattractiveness of infrastructure assets in China...

Table of Contents

BMI Industry View
7
SWOT
8
Infrastructure SWOT
8
Industry Forecast
10
Construction And Infrastructure Forecast Scenario
10
Table: Construction And Infrastructure Industry Data (China 2013-2018)
10
Table: Construction And Infrastructure Industry Data (China 2019-2024)
12
Transport Infrastructure - Outlook And Overview
21
Table: Transport Infrastructure Industry Data (China 2013-2018)
21
Table: Transport Infrastructure Industry Data (China 2019-2024)
22
Table: China - Key Guidelines For Railway Development Fund
27
Table: Major Projects Table - Transport
33
Energy And Utilities Infrastructure - Outlook and Overview
52
Table: Energy And Utilities Infrastructure Data (China 2013-2018)
52
Table: Energy And Utilities Infrastructure Data (China 2019-2024)
53
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 2013-2018)
88
Table: Residential and Non-Residential Building Industry Data (China 2019-2024)
88
Table: Major Projects Table - Residential/Non-Residential Construction and Social Infrastructure
94
Industry Risk Reward Ratings
100
China - Infrastructure Risk/Reward Index
100
China's Risk/Reward Index
100
Rewards
100
Risks
100
Asia Pacific - Infrastructure Risk/Reward Index
101
Developed Markets: Favoured
102
Giants Of Asia: Rewards Sizeable, Risks Sizeable
104
South East Asia: Environment Deteriorating Slightly
105
Table: Asia Pacific Infrastructure Risk Reward Index
107
Market Overview
108
Competitive Landscape
108
Company Profile
110
Sinohydro
110
China Communications Construction
115
Shanghai Construction Group
118
China Railway Group
121
China Railway Construction Corporation
125
Global Industry Overview
130
Industry Trend Analysis
130
Table: Multilaterals And Development Bank Infrastructure Support Programmes
134
Methodology
136
Industry Forecast Methodology
136
Sector-Specific Methodology
137
Risk/Reward Index Methodology
141
Sector-Specific Methodology
142
Table: Infrastructure Risk/Reward Index Indicators
142
Table: Weighting Of Indicators
143

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