建筑行业周报（5.10-5.16）：政府债支撑社融增长，政策加力支持城市更新

Investment Rating - The report suggests a positive outlook for the construction industry, particularly focusing on urban renewal and infrastructure investment supported by government bonds [1][3]. Core Insights - The report highlights that in April, China's new social financing reached 1.16 trillion, an increase of 1.2 trillion compared to the same period last year, with a cumulative total of 16.3 trillion from January to April, up by 3.6 trillion year-on-year. The increase in government bonds, particularly special bonds, is a significant driver of this growth [1][3]. - The report emphasizes the acceleration of government bond issuance this year compared to last year, indicating ample fiscal resources to support investment. It recommends focusing on investment directions related to urban renewal policies [1][3]. - The report notes that the Central and State Council have issued documents to promote urban renewal, including the renovation of old neighborhoods and improvement of urban infrastructure [3]. Summary by Sections Market Performance - The CITIC Construction Index rose by 0.9% this week, while the CSI 300 increased by 1.1%, indicating that the construction sector underperformed the broader market by 0.2 percentage points [2][12]. - Among construction sub-sectors, residential construction performed the best, outperforming the market by 1.1 percentage points [2][14]. Financing Situation - Local government special bond financing totaled 95.6 billion this week, with a net financing amount of 94.5 billion. The cumulative issuance of new special bonds for 2025 is projected to reach 1.3372 trillion, with a progress rate of 29.7% [2][21]. - City investment bonds saw a total financing of 8.2 billion this week, with a net financing of -23.6 billion, reflecting a 28 billion increase compared to the previous week [2][32]. Industry News - The report mentions that the central government will support urban renewal actions and encourage financial institutions to participate in a compliant and sustainable manner [3]. - It also highlights that the share of new energy and renewable energy installations in Shandong has exceeded 51% [3]. Investment Recommendations - The report suggests focusing on state-owned enterprises involved in infrastructure, such as China Nuclear Engineering, China State Construction, and China Communications Construction, as well as companies engaged in new infrastructure like Honglu Steel Structure and Tunnel Co [3]. - It also recommends monitoring companies involved in overseas projects, such as Shanghai Port and Northern International [3].