Core Points - The South Africa-China Trade and Investment Promotion Conference and the 9th China-South Africa Trade Expo opened in Johannesburg, attended by hundreds of representatives from both countries' political, business, and academic sectors [1][3] Group 1: Event Overview - The event aims to implement the important consensus reached by the leaders of both countries, supporting South Africa's industrialization and export diversification, and building a high-level South Africa-China community of shared destiny [3] - The conference highlights the long-standing close trade and investment relationship between South Africa and China, with China being South Africa's largest trading partner for several consecutive years [5] Group 2: Economic Cooperation - There is a growing momentum in cooperation between the two countries in areas such as infrastructure, green development, and digital economy, which is expected to further drive South Africa's economic growth and social development [5] - Various memorandums of understanding were signed between business representatives from both countries, indicating a commitment to enhance information sharing, promote enterprise exchanges, and jointly conduct activities [8] Group 3: Participation and Exhibitors - The 9th China-South Africa Trade Expo will last for three days, concluding on the 25th, featuring over 400 leading enterprises from 44 cities across 13 provinces in China, covering industries such as textiles, home appliances, electronics, building materials, and furniture [10]

Investment Rating - The report indicates a selective recovery in capital expenditures in Europe expected after 2026, driven by energy transition, security demands, and government support [1][2][4]. Core Insights - European capital expenditures as a percentage of sales reached a historical low in 2023, but are projected to rebound selectively post-2026 due to structural factors and government incentives [1][2][4]. - Global capital expenditure growth is expected to be slightly below 5% in 2025, up from 4% in 2024, with large project orders being delayed rather than canceled [1][6]. - Key growth areas identified include data centers, utilities, and defense sectors, driven by electrification, artificial intelligence, and government support [1][7][21]. Summary by Sections Current Investment Trends - European companies have historically focused on shareholder returns through dividends and buybacks, resulting in lower capital expenditures [2]. - Despite macroeconomic uncertainties, there is renewed investment demand in capital-intensive industries driven by themes such as energy transition and digitalization [3][4]. Sector Performance - The technology sector, particularly data centers and semiconductors, has maintained stable growth of over 15% in the past two years [8]. - Utilities, especially in the power grid sector, have shown mid to high single-digit growth, while mining capital expenditures are projected to grow at 7% [8][18]. Future Opportunities - Significant growth is anticipated in data centers, utilities, and defense sectors, with specific investment baskets available for targeted exposure [7][28][32]. - Companies like Schneider and Legrand are highlighted as key players in the data center market, while Atlas Copco is noted for its strong growth potential in the semiconductor sector [17][26]. Challenges and Market Dynamics - Traditional heavy industries and consumer-related sectors are experiencing weaker performance, with food and beverage industries showing below-average prospects [9]. - Tariff issues have impacted large project investment decisions, but resolving these could lead to a resurgence in capital expenditures in 2026 [13][34]. Investment Baskets and Strategies - Various investment baskets are recommended for capital expenditure beneficiaries, including those focused on defense, AI infrastructure, and broader capital spending themes [30][31][32]. - The report emphasizes the importance of focusing on thematic trends rather than individual company performance in the current economic environment [27].