HK Stock Market Move | China Railway Signal & Communication Corporation (03969) surged more than 7%, leading the way among infrastructure stocks. The China Securities Regulatory Commission is actively promoting a plan to increase market value. High-quality and undervalued construction central enterprises are expected to be restored.

Infrastructure stocks continue to rise, as of the time of writing, China Railway Signal & Communication Corporation (03969) rose 6.41% to HK$2.99; China Communications Construction (01800) rose 5.41% to HK$4.48; China Railway (00390) rose 3.56% to HK$3.49; China Railway Construction Corporation (01186) rose 3.21% to HK$4.82. On the news front, in order to further guide listed companies to focus on their investment value and effectively increase investor returns, the China Securities Regulatory Commission is drafting the "Guidelines for Listed Companies No. 10 - Market Value Management (Consultation Draft)." Guotou Securities pointed out that at the beginning of the year, the State-owned Assets Supervision and Administration Commission proposed to include market value management in the assessment indicators for central enterprises, aiming to improve the quality of centrally-held listed companies. Currently, many traditional construction central enterprises are at low valuations. With the release and subsequent implementation of the market value management guidelines for listed companies (consultation draft), the valuation repair and market returns of high-quality undervalued construction central enterprises can be expected. CITIC Securities believes that since the beginning of this year, the overall construction industry has been under pressure, with infrastructure investment playing an important role in economic growth. The issuance of funds such as special local government bonds and long-term special national bonds may alleviate industry pressures. Looking ahead, domestic infrastructure investment will continue to be a major driver of economic growth, with centrally-owned construction enterprises overall more stable and development opportunities in some specific sectors becoming more prominent. The construction market overseas, particularly in the Middle East and Southeast Asia, is expected to continue to achieve rapid growth.