Group 1: Economic Reform and Innovation - Shenzhen's R&D investment as a percentage of GDP increased from 4.93% in 2020 to 6.46% in 2024[4] - The number of national high-tech enterprises in Shenzhen exceeds 25,000, with 1,025 classified as "little giant" enterprises[4] - Strategic emerging industries' value added as a percentage of GDP rose from 37.1% in 2020 to 42.3% in 2024[10] Group 2: Talent and Education Reform - Shenzhen introduced a talent service company, with nearly 44,000 new talents registered in the first five months of 2025[4] - High-skilled talents in Shenzhen reached 1.59 million, accounting for 39.2% of skilled talents[4] - The city aims to establish a comprehensive talent support system, including housing and office space[4] Group 3: Financial and Data Empowerment - Shenzhen's financial measures include "Tengfei Loan" and "Park Loan" to support tech and small enterprises[10] - The establishment of the Shenzhen Data Exchange in 2022 aims to enhance data trading and management[10] - The issuance of the first targeted technology innovation bond post-implementation of the reform opinions indicates practical outcomes[3] Group 4: Open Economy and Trade - Shenzhen's total foreign trade volume reached 4.5 trillion yuan in 2024, a year-on-year increase of 16.4%[20] - The city has established a cross-border fund pool pilot, reducing cross-border fund transfer time from 2 days to 5 minutes[20] - Shenzhen aims to adapt to high-standard trade rules like CPTPP and RCEP to enhance its open economy[20] Group 5: Governance and Public Services - Public spending on people's livelihoods increased from 68% of the general public budget in 2020 to nearly 70% in 2024[24] - The number of three-tier hospitals in Shenzhen rose from 22 at the end of 2020 to 33 by the end of 2024[24] - PM2.5 concentration decreased from 20 micrograms per cubic meter in 2020 to 17.3 micrograms per cubic meter in 2024[24]

Core Viewpoint - Shenzhen is advancing the high-quality development of the real economy through the empowerment of finance, technology, and data as part of its comprehensive reform pilot initiative [1] Group 1: Key Areas of Focus - The Shenzhen government is implementing reforms in four key areas: 1. Reforming the education, technology, and talent system [1] 2. Empowering the real economy with finance, technology, and data [1] 3. Establishing a higher-level open economic system [1] 4. Improving governance models to be more scientific, refined, and law-based [1]

Investment Rating - The industry investment rating is "Overweight" indicating a positive outlook for the sector compared to the overall market performance [3][29]. Core Insights - The report highlights the government's commitment to stabilizing the real estate market and enhancing construction policies to stimulate demand and optimize supply [4][13]. - The construction industry is currently experiencing weak overall performance, but regional investments are expected to gain momentum as national strategies are implemented [4][15]. - Key companies such as China Electric Power Construction and Zhi Te New Materials have secured significant contracts, indicating potential growth opportunities [15][19]. Industry Performance Summary - The construction sector's weekly performance showed a decline of 1.41%, underperforming against major indices like the Shanghai Composite Index [5][6]. - The best-performing sub-industry was Professional Engineering with a slight increase of 0.09%, while the International Engineering sector saw a decline of 1.67% [6][10]. - Year-to-date, the Ecological Landscaping sub-industry has shown the highest growth at 15.38%, followed by Decoration Curtain Wall at 11.63% [6][10]. Key Company Developments - Zhi Te New Materials signed a strategic cooperation agreement with PREMIUM INFINITE VENTURES INC. valued at approximately 420 million USD, equivalent to about 3 billion RMB [15][19]. - China Electric Power Construction won a bid for a major offshore wind power project in Liaoning with a contract value of approximately 10.77 billion RMB [15][19]. - Other notable companies include ST Baili, which saw a weekly increase of 22.89%, and Libaite with a 19.1% increase [11][12]. Market Trends and Changes - The report notes significant government initiatives aimed at enhancing the construction sector, including the integration of real estate development into urban renewal mechanisms [4][13]. - The focus on high-quality economic development through financial, technological, and data empowerment is emphasized as a key driver for the industry [13][14]. Company Valuation and Earnings Forecast - The report provides a detailed valuation table for key companies in the construction sector, indicating projected earnings per share (EPS) and price-to-earnings (PE) ratios for the coming years [22][24]. - For instance, China Railway has an estimated EPS of 1.13 for 2024, with a PE ratio of 4.9, while China Electric Power Construction is projected to have an EPS of 0.70 with a PE of 7.0 [22][24].