建筑装饰行业跟踪周报：财政支出同比有所回升，政策效果逐渐显现

Investment Rating - The report maintains an "Overweight" rating for the construction and decoration industry [1]. Core Viewpoints - The fiscal expenditure has shown a year-on-year recovery, with significant improvements in October's fiscal data, indicating a potential stabilization in physical demand [2][3]. - The report highlights the government's emphasis on high-quality housing construction to meet the public's needs, which is expected to drive demand in the housing market [2][39]. - The report suggests that the construction sector will benefit from ongoing policies supporting infrastructure investment and the transformation of old housing [2][39]. Summary by Sections 1. Industry Viewpoints - In October, the general public budget expenditure and government fund expenditure increased by 10.3% year-on-year, with infrastructure spending growing by 47.9% [21]. - Cumulative infrastructure investment growth accelerated to 4.3%, reflecting the effectiveness of issuing special bonds [21]. - The report recommends focusing on state-owned enterprises with low valuations and stable performance, such as China Communications Construction Company, China Electric Power Construction, and China Railway [21]. 2. Industry and Company Dynamics 2.1. Industry Data Commentary - From January to October, the national general public budget revenue was 184,981 billion yuan, a decrease of 1.3% year-on-year, while expenditure was 221,465 billion yuan, an increase of 2.7% [27]. - Government fund budget revenue decreased by 19%, with significant declines in land transfer income [27][28]. 2.2. Industry Policy Commentary - The government is pushing for the construction of "good houses" that meet high-quality living standards, emphasizing the need for technological innovation in construction [39][41]. - Policies supporting the renovation of old housing and the construction of new, high-quality homes are expected to stimulate demand in the housing market [39][42]. 2.3. Industry News - Recent collaborations between the National Development and Reform Commission and Brazil are aimed at enhancing infrastructure cooperation [44]. 3. Weekly Market Review - The construction and decoration sector experienced a weekly decline of 1.61%, outperforming the Shanghai Composite Index and the Wind All A Index [50]. - Notable gainers included Zhejiang Construction Investment and Dongzhu Ecology, while China Haicheng and Beifang International were among the biggest losers [50][52].