Ken Research has announced its distribution on, “Infrastructure Insight: China” which provides a detailed view into the infrastructure sector in China, including analysis of the state of the current infrastructure, the regulatory and financing landscapes and the major projects in the construction pipeline.
The report describes all key infrastructure sectors: roads, railways, electricity and power, water and sewerage, communication, and airports and ports along with a brief analysis of the administrative, economic and political context for infrastructure in China.
It furnishes an explanation of the key drivers of growth in new investment and an overview of the project pipeline, with a detailed look at the prospects for major projects and the companies that have secured contract.
Report makes it easier to assess the current state of Chinese infrastructure and the main drivers of investment, including the key institutions and financing methods and further investigate forecasts and gain a comprehension of key trends in each of the main infrastructure sectors.
Key Market Dynamics
- Infrastructure developmentpersists to be a top priority for China’s government, which has long realized that a modern economy runs on reliable roads and rails, electricity, and telecommunications.
- From the late 1990s to 2005, 100 million Chinese profited from power and telecommunications upgrades. Between 2001 and 2004, investment in rural roads propagated by a massive 51 percent annually. And in recent years, the government is using substantial infrastructure spending to hedge against flagging economic growth.
- While China's overall economic expansion had been constantly falling, investors remained positive considering it to be an outcome of the nation developing, with a dwindling productivity gap compared with advanced economies leading to a natural downfall in growth as it becomes more difficult to close.
- China's 13th Five Year Plan (2016-2020) forms the country's most recent set of social and economic initiatives, including priorities for its infrastructure sectors. Among the infrastructure targets are investments of USD 395 billion in road and rail. Renewable and sustainable infrastructure has become more of a priority, especially in the areas of water, sewerage, electricity and power.
- China’s leadership has mapped equally ambitious plans for the future. Infrastructure is likely to continue to be a prestigious part of the Chinese investment program. Its goal is to bring the whole nation’s urban infrastructure up to the level of infrastructure in a middle-income country, using increasingly efficient transport logistics to tie the country together. As a result, the Chinese construction industry outpaced GDP growth in 2016.
- Moreover, the country restated its dedication to infrastructure spending in the immediate term, quoting low raw material prices and increasing domestic demand as construction drivers.
- 1,455 large-scale infrastructure construction projects are currently being recorded in China with a total investment value of USD 2.8 trillion.
- The railways sector accounts for the largest share of the project, with a total value of USD 1.25 trillion.
- The public sector is expected to directly fund 79% of the infrastructure construction project pipeline, with a further 13% being funded privately; the remaining 8% will be funded through public-private partners and this proportion of government-funded projects is forecasted to become a greater concern in the future, as government debt will reach new heights and China will accordingly adjust to growth levels though at a slow pace.
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