Chinese infrastructure spending to increase, boosting construction sector

In China, the news that the construction industry has been waiting for came with an announcement over infrastructure spending. The Chinese Government said it will invest heavily in infrastructure spending, particularly in extending the country’s high speed rail network. The news brought a flurry of trading on the Chinese stock market, seeing share price gains for various major Chinese construction equipment manufacturers including LiuGong, Sany and Shantui.
September 10, 2012 Read time: 1 min
In China, the news that the construction industry has been waiting for came with an announcement over infrastructure spending. The 2719 Chinese Government said it will invest heavily in infrastructure spending, particularly in extending the country’s high speed rail network. The news brought a flurry of trading on the Chinese stock market, seeing share price gains for various major Chinese construction equipment manufacturers including 269 LiuGong, 1170 Sany and 1171 Shantui.

New machine sales have been hit hard since the beginning of 2012. But this development looks likely to give the country’s construction sector the boost it requires, allowing contractors to order new equipment and also helping manufacturers to sell off unsold stock.

For more information on companies in this article

Related Content

  • SDLG and Volvo CE are utilising a novel dual brand approach in key markets
    October 14, 2013
    SDLG and Volvo CE are adopting a dual brand approach – Mike Woof writes. Chinese firm SDLG and its European partner Volvo CE are working on a novel arrangement that will see the two companies use a dual brand marketing strategy. While the sales channels in these markets will remain distinct, some back office services and parts logistics will be shared, affording SDLG much greater customer support than offered by other Chinese exporters
    Read More
  • China increasing construction spending
    July 24, 2013
    A new report from the US-based Freedonia Group suggests that China’s expenditure on construction will grow at around 8.5%/year until 2017. This will follow demand due to increasing urbanisation and industrialisation, as well as rising income levels. The continued investment by the Chinese Government in infrastructure will be another major factor in the growth in construction spending. But growth will be more moderate than the 16%/year seen during the 2007-2012 period. The Chinese Government had a stimulus p
    Read More
  • Sany Road Machinery is keen to boost exports to developing nations
    January 6, 2017
    Sany Road Machinery says it is looking to increase exports of its soil compactors, milling machines, asphalt pavers and asphalt compactors. The company has had sales success with exports in certain key territories, most particularly Latin America, Africa and South Asia. Indonesia has been a particularly strong market for the company and Sany Road Machinery wants to capitalise on the strong demand for equipment in the country as Indonesia pushes ahead with its major programme of expansion for its tolled high
    Read More
  • Sany Road Machinery is keen to boost exports to developing nations
    November 29, 2012
    Sany Road Machinery says it is looking to increase exports of its soil compactors, milling machines, asphalt pavers and asphalt compactors. The company has had sales success with exports in certain key territories, most particularly Latin America, Africa and South Asia. Indonesia has been a particularly strong market for the company and Sany Road Machinery wants to capitalise on the strong demand for equipment in the country as Indonesia pushes ahead with its major programme of expansion for its tolled high
    Read More

Highlighted Content