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Long Industry Chain in Upstream and Downstream

  • Date Submitted: 12/29/2012 06:36 PM
  • Flesch-Kincaid Score: 61.2 
  • Words: 310
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Investment in this year, especially in infrastructure investment in this year has just begun, and the highway has a target of 40,000 km in the "12th Five-Year Plan”. Due to delay in the process last year, it is slowly and quietly catching up this year. To start from the second half of the year, next year we will feel that trend will emerge explosively. China's goal is to have highway more than 80,000 km, which means to become a global highway power, now the highway in China is almost 70,000 kilometers, and it is still ongoing.Subway, not only first-tier cities have subways, and a lot of second and third tier cities has been submitted to the Development and Reform Commission for subways, so there may be more than twenty cities with subways. Now, some second-tier cities and third-tier cities have start building subways, so we can estimate that there will be 20-30 cities to begin construction of the subway and airport during the entire "12th five-Year" period.

    Investment in infrastructure industries is a very long industry in upstream and downstream chain, and the upstream will be involved in the machinery and equipment (rod mill and ball mill), energy, as well as the construction of road materials; while the downstream would involve travel, transportation, consumer. Under the pull of the chain, we are very optimistic about the economy as a whole. Therefore, we think the entire infrastructure investment boom will lead not only China's good economy in next year, and there will be an upward trend in the next five to ten years. So, GDP is expected to remain in the 5% -7% in the golden years of the Chinese economy.

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