Investment Rating - The investment rating for the construction decoration industry is "Positive" (maintained) [3] Core Viewpoints - The report indicates that the broad infrastructure growth rate is slightly positive for the first ten months of 2025, but there was a significant decline in October. The narrow infrastructure (excluding electricity) completed a total of 14.91 trillion yuan, a slight year-on-year decrease of 0.10%. The broad infrastructure reached 20.38 trillion yuan, with a year-on-year growth of 1.51%. In October alone, narrow infrastructure saw a year-on-year decline of 8.91%, while broad infrastructure declined by 12.11%. The report anticipates that major projects under the "14th Five-Year Plan" will help maintain investment resilience [4][9]. Summary by Sections Market Review - The report notes that the Shanghai Composite Index fell by 0.18%, the Shenzhen Component Index by 1.40%, and the ChiNext Index by 3.01%. In contrast, the construction decoration index rose by 0.35%, with significant gains in landscaping engineering, decoration, and steel structures, which increased by 5.21%, 5.18%, and 2.39% respectively. A total of 104 construction stocks rose during the week, with the top five performers being Guosheng Technology (+60.98%), *ST Dongyi (+21.54%), Landscaping Co. (+17.23%), Rishang Group (+17.14%), and *ST Baoying (+16.90%) [6][21]. Infrastructure Data Tracking - For the first ten months of 2025, the cumulative issuance of special bonds reached 71.14 trillion yuan, reflecting a year-on-year increase of 28.33%. The issuance of urban investment bonds for the same period was 388.69 billion yuan, with a net financing amount of -340.66 billion yuan [25]. Company Dynamics - Several companies reported significant project wins, including Shaanxi Construction Group with a total bid amount of 10.16 billion yuan for two projects, and Sichuan Road and Bridge, which signed a major contract for the G5 expressway expansion project with a maximum contract price of 131.3 billion yuan [16][19].

Group 1: Infrastructure Investment Definitions - Narrow infrastructure investment excludes electricity and includes telecommunications and internet services, while broad infrastructure includes electricity, heat, gas, water production, and supply[1][5] - In 2017, electricity, heat, gas, and water production accounted for approximately 17% of broad infrastructure investment, while warehousing accounted for about 4%[1][7] Group 2: Recent Trends and Discrepancies - In September, narrow infrastructure investment growth was -4.6%, improving from -5.9%, while broad infrastructure investment fell to -8% from -6.4%[2][8] - Excluding the impact of electricity, heat, gas, and water industries, broad infrastructure growth would decline further, exacerbating the discrepancy[2][8] - Internet and related services, included in narrow but not broad infrastructure, saw a 20.6% increase in investment, contributing to the divergence[2][8] Group 3: Impact of Specific Sectors - Warehousing investment dropped from 4% to -23% in September, significantly affecting broad infrastructure investment[3][9] - Estimated that warehousing accounted for about 3.9% of total infrastructure investment in September, contributing a -0.9 percentage point drag on broad infrastructure growth[3][9]