CAITONG SECURITIES·2026-03-02 03:10Group 1: Market Performance - The construction index increased by 6.08%, outperforming the Shanghai and Shenzhen 300 index, which rose by 2.67%, resulting in a 3.41 percentage point lead for the construction sector[5] - Notable stock performances included Roman Holdings (+38%), Hualan Group (+17%), and Huadian Science and Technology (+17%) among others[11] Group 2: Recovery Indicators - As of February 25, 2026, the national construction resumption rate was 8.9%, a year-on-year increase of 1.5 percentage points; labor utilization rate was 15.5%, up by 3.7 percentage points; and funding availability rate was 29%, an increase of 9.4 percentage points[6] - The issuance of special bonds reached 824.2 billion yuan in January-February 2026, a year-on-year increase of 38%[6] Group 3: Government Initiatives - Local governments are optimistic about project commencement, with some provinces setting hard targets for project initiation rates exceeding 50% in Q1 2026[7] - Major provinces like Jiangsu and Shandong have increased their planned investment in significant projects for 2026, indicating a proactive approach to infrastructure development[9] Group 4: Sector Focus - The geopolitical situation, particularly the U.S. actions against Iran, is expected to benefit the construction and chemical sectors due to potential supply constraints and rising prices[10] - The coal chemical sector is anticipated to gain importance as energy security becomes a priority, with significant projects in Xinjiang valued at 866.8 billion yuan under consideration[10]