Infrastructure stocks rally on stimulus hopes, local governments announced over 25 trillion yuan investment

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Chinese infrastructure stocks stage a strong rally recently as bleak economic data fuelled hopes that Beijing will roll out more stimulus measures to boost the economy. Local governments have announced more than 25 trillion yuan projects.

Amid the increasing downward pressure on the economy due to the coronavirus outbreak, ten local governments including Jiangsu, Beijing, Yunnan, Fujian, Henan, etc. have announced plans of more than 25 trillion yuan projects, of which 4.3 trillion yuan investment is expected to be made this year.

According to their announcement, most of the investment will flow into infrastructure . . .

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