Core Insights - The report emphasizes that China's infrastructure sector is entering a "DeepSeek moment," driven by both policy support and market demand, as the country shifts towards a more robust internal demand model amidst global economic uncertainties [2][7]. - Key infrastructure projects, such as the Yarlung Tsangpo River hydropower project and the Hainan Free Trade Port construction, are highlighted as significant drivers of investment and economic growth [3][4]. Infrastructure Sector Developments - The Yarlung Tsangpo River hydropower project is noted as a strategic mega-project that will enhance China's clean energy supply and stimulate investment across various industries, including explosives, engineering machinery, and power equipment [3]. - The Hainan Free Trade Port is recognized as a model for regional development and infrastructure upgrades, attracting significant capital and talent, with a focus on enhancing infrastructure in tourism and high-tech industries [3]. - Urban renewal initiatives are shifting from expansion to quality improvement, focusing on optimizing existing urban spaces, which will drive growth in construction materials, smart devices, and related sectors [4]. Economic Transition and Internal Demand - The report discusses the shift in China's economic model from reliance on exports to leveraging internal demand, with infrastructure investment playing a crucial role in this transition [5][6]. - The construction of a unified national market is expected to facilitate the efficient flow of resources, with infrastructure investment serving as a key platform for this development [6]. - The infrastructure sector is characterized by high dividend yields and strong policy support, making it an attractive investment opportunity in the current low-interest-rate environment [6][7]. Investment Opportunities - The report suggests focusing on leading companies in the infrastructure sector that exhibit high dividend yields, strong policy protection, and technological advantages [11]. - Companies involved in urban renewal and those in the renewable energy and environmental protection sectors are identified as key areas for investment, given the increasing emphasis on sustainable development [11]. - Enterprises that can facilitate the flow of resources within the newly constructed national market are also highlighted as potential beneficiaries of this economic shift [11].