Chinese stock investors are getting behind a government push to improve infrastructure in the western Xinjiang and Tibet regions, suggesting a bright future for project cargo businesses serving less-developed parts of the country.
A recent Investment News report also cited investor demand for stock in companies doing business in Fujian and Shanxi provinces, particularly those that could benefit from the government’s decision to sell off units of some state-owned enterprises.
But Xinjiang is a standout, the report said, as the government has set a goal for 2017 to boost fixed-asset investment by 50 percent to 1.5 trillion yuan. Highway construction investment is slated to reach 200 billion yuan this year, while railway construction spending is expected to hit 34.7 billion yuan and airport construction investment 14.3 billion yuan.
Xinjiang is also a hotspot for water conservation projects and rural electrification projects.
The government’s investments in infrastructure are expected to attract private investment in energy, telecommunications, transportation, petroleum, natural gas and other business areas, the report said.
Photo: Highway in Xinjiang