On October 13, 20 departments including the Ministry of Finance, the Ministry of Industry and Information Technology, and the Ministry of Transport jointly issued the third batch of government and social capital cooperation demonstration projects to accelerate the construction of demonstration projects. After the recommendation and expert review of relevant provinces, autonomous regions, municipalities directly under the Central Government, cities under separate plans, and ministries and commissions, 516 projects including the Beijing Capital Region Ring Expressway (Tongzhou-Daxing Section) have been identified as the third batch of PPP demonstration projects, with a total planned investment of 11,708 100 million yuan. Procurement of the first batch of demonstration projects should be completed by the end of 2016, and the second batch of demonstration projects should be completed by the end of March 2017. Those who have not completed the procurement within the time limit will be transferred to the list of demonstration projects; the third batch of demonstration projects should in principle be 2017 Complete the purchase before the end of September

The third batch of demonstration projects covers energy, transportation, water conservancy construction, ecological construction and environmental protection, municipal engineering, comprehensive urban development, agriculture, forestry, science and technology, affordable housing projects, tourism, medical and health, elderly care, education, culture, Sports, social security and other 18 first-level industries. Among them, municipal engineering, transportation, ecological construction and environmental protection, and comprehensive urban development have the largest number of projects, accounting for 43%, 12%, 9%, and 6%, respectively, accounting for 70% of the total; transportation, Municipal engineering, comprehensive development of cities and towns, ecological construction and environmental protection have the largest investment, accounting for 43%, 27%, 10%, and 7% respectively, and the total proportion is 87%.

In the context of the real estate industry entering a new round of adjustment period, the infrastructure industry has become the main driving force for steady growth. PPP spurs a large amount of government and private capital to invest in the infrastructure field, bringing investment opportunities to the traditional construction machinery industry. Transportation and municipal engineering investment accounts for about 70% of the total PPP investment. According to our statistics, road investment accounts for about 70% of transportation, and urban rail transit investment accounts for about 37% of municipal engineering. Therefore, roads and cities The huge investment in rail transit has laid the foundation for the recovery of the construction machinery industry.

Benefiting from the pull of PPP investment, the sales of major construction machinery equipment have shown a pick-up trend this year. According to statistics from China Machinery Net, sales of excavators increased by 45% in August, XCMG truck cranes increased by about 58% in July, road machinery increased by 30%, rotary drilling rigs increased by 57%, and loaders decreased by 13%. XCMG truck cranes are expected to increase by 50% in August, and orders for September and October are expected to increase. Starting in February this year, the monthly working hours of excavators ended the decline since 2014, with an increase of 10% in August and an average growth rate of 6% in operating hours from January to August. Overall, the sales of bulldozers rebounded sharply year-on-year, the sales of excavators, road rollers and asphalt concrete machines began to show steady growth, and the decline in sales of loaders narrowed.

Sector performance:

The machinery sector rose 1.93% last week, while the CSI 300 rose 0.36% over the same period. The top five on the list of gains and losses in the machinery sector are: Zhongji Equipment (61.15%), Tianma (32.96%), Jinlun (28.83%), Yituo (23.99%) and Haowu (20.87%); The last five gains and losses were: He Forging (-4.07%), Petroleum Jichai (-4.35%), Nantong Forging Press (-6.26%), Kangyue Technology (-7.54%) and Huadong Heavy Machinery (-8.61) %).