2021.09.16
■ China’s National Bureau of Statistics released the Aug 21 macro data, which were below market expectations. But this was due partly to the COVID-19 delta variant outbreak, tightening in the property sector, and stronger environmental protection controls. ■ We still believe that FAI-related names, especially those related to new infrastructure, such as 5G, power grids and renewable energy, will report accelerated growth in 2H21. We still prefer ZTE [0763.HK], CCS [0552.HK], China Tower [0788.HK], Wasion [3393.HK] and Xinyi Solar [0968.HK]. ■ Other infrastructure names such as CSCI [3311.HK] and CRG [390.HK] may be treated as proxies for a pick-up in FAI. ■ Upstream names such as CNBM [3323.HK] and CR Cement [1313.HK] may benefit from a more favourable pricing environment due to supply constraints. ■ The analysis in this report is based on industry and macro figures and may differ from the views of individual analysts, in some cases.
