兴证建筑行业每周观点：财政政策持续发力，继续看好大建筑央企投资机会

Investment Rating - The report maintains an "Overweight" rating for major state-owned construction companies, including China Railway, China State Construction, China Communications Construction, China Railway Construction, China Electric Power Construction, China National Chemical Corporation, China National Materials, China Steel International, and Honglu Steel Structure [1][2][3]. Core Viewpoints - The report emphasizes that fiscal policies are continuously being implemented, leading to an improved outlook for the construction industry, particularly for large state-owned enterprises [3]. - It highlights that the National Development and Reform Commission and the Ministry of Finance are pushing for a series of incremental policies to support local governments in resolving hidden debt risks, which is expected to enhance infrastructure investment [3]. - The construction sector's performance is anticipated to improve due to increased support from special bonds and monetary easing measures, which will alleviate cash flow pressures [3][4]. - The report notes that the valuation of the construction sector remains low, with a PE (TTM) of 8.86 and a PB of 0.73 as of October 11, 2024, indicating potential for upward adjustment [3][11]. Summary by Sections 1. Important Events Tracking - The report details significant events, including the inclusion of urban renewal projects in the scope of local government special bond support and the promotion of private capital participation in major infrastructure projects [10]. 2. Market Performance Tracking - The construction engineering sector (SW) experienced a decline of 2.36% from October 8 to October 11, 2024, while the overall A-share index fell by 4.04%, resulting in an excess return of 1.68 percentage points for the construction sector [11]. - Sub-sectors such as road and bridge engineering showed positive performance, while others like steel structure and material leasing faced declines [11][12]. 3. Industry Data Tracking - Fixed asset investment reached 329,385 billion yuan in the first eight months of 2024, with a year-on-year growth of 3.4% [4]. - Special bonds issued from October 5 to October 11, 2024, totaled 16.663 billion yuan, with cumulative issuance reaching 36,160.09 billion yuan, accounting for 92.72% of the annual plan [19][22].