HK Stock Market Move | Infrastructure stocks saw further gains in the afternoon, with the market focusing on Ukraine's large-scale reconstruction work. Institutions are optimistic about a slight increase in infrastructure investment this year.

Infrastructure stocks saw their gains expand in the afternoon, as of the time of writing, China Aluminum International Engineering Corporation (02068) rose by 4.32% to HK$1.93; China Railway (00390) rose by 3.45% to HK$3.9; China Railway Construction Corporation (01186) rose by 3.44% to HK$5.42; China Communications Construction (01800) rose by 2.77% to HK$5.19. On the news front, according to Caixin, Ukrainian President Zelensky stated during a press conference in Kiev on the afternoon of February 23 that he hopes to receive China's help in restoring peace and future reconstruction in Ukraine. He expressed willingness for dialogue with China on this matter. Market experts pointed out that once the conflict ends, the large-scale reconstruction in Ukraine will bring significant market demand in areas such as construction, energy, and infrastructure. CICC previously stated that signs of fiscal stimulus in the infrastructure sector are already visible in the second half of 2024, such as accelerated issuance of special bonds and increased issuance of local government special refinancing bonds at the end of the year. Looking ahead to 2025, it is expected that infrastructure investment will achieve a slight growth under the push of fiscal stimulus and debt-to-equity conversion, with the growth rate expected to increase to around 10%. However, real estate investment in 2025 may still face pressure, and manufacturing investment may also slow down, leading to continued differentiation in the construction sector fundamentals.