1EQUITIES ● INDUSTRIALSNovember 2018THIS CONTENT MAY NOT BE DISTRIBUTED TO THE PEOPLE'S REPUBLIC OF CHINA (THEPRC) (EXCLUDING SPECIAL ADMINISTRATIVE REGIONS OF HONG KONG AND MACAO)Why read this reportOur analysis shows that China needs to increaseinfrastructure investment by RMB2trn by the endof 2019e to stabilise the growth rate of fixedasset investment at around 5%.We identify where the money is likely to be spentand why the central government is likely to play amajor role in financing new projects throughseveral different channels.We show which companies should benefit mostand why this current increase in infrastructureinvestment should be more sustainable thanthose in the past. The 3majorinfrastructure contractorscombinedwouldsee marketshareincrease 20172018e2019e2020e3EQUITIES ● INDUSTRIALSNovember 2018 Sizing up the investment 4RMB2trn reasons for optimism 4Where is the project funding coming from 5Ranking of Chinese construction companies 6More sustainable growth 7RMB2trn to stabilise infrastructureinvestment by the end of 2019e 7Funding infrastructure investment ina deleveraging environment 9PPP focus should shift towardscommercial projects 17Chinese construction industryconsolidation 19ESG matters for the Chineseconstruction industry 22Outlook for companies 25Chinese construction companies 25Capital goods – demand to hold up in 2019 26Disclosure appendix 53Disclaimer 56Contents。。。。。。