New Market Report Now Available: China Infrastructure Competitive Intelligence Report Q4 2010

Nov. 20, 2010 - PRLog -- China's infrastructure market is dominated by state-owned enterprises. Although relatively young compared with other infrastructure players in developed markets, these companies have grown rapidly in tandem with China's economy and have become some of the largest construction companies in the world. In 2009, two Chinese state-owned construction companies, China State Construction Engineering Corporation and Metallurgical Corporation of China were the two largest initial public offerings in the world.

Although initially specialised in certain infrastructure sub-sectors, the Chinese companies have since branched out to other construction businesses. One example is China Gezhouba Group Corporation, a Chinese state-owned company that initially focused on the construction of hydropower dams, but has since branched out into toll road operations, real estate, railways and airports.

China's state-owned infrastructure majors have also benefited from the government's lack of trust towards non-Chinese and even non-state entities. Foreign infrastructure companies are only allowed to enter the Chinese market if domestic companies do not have the technical expertise, or through minority stakes in joint ventures with domestic companies. These very high barriers to entry for foreign infrastructure companies means that Chinese companies have been able to reap the full benefits of the government's economic stimulus package launched in 2009. Of the CNY4trn (US$598bn) stimulus plan, almost CNY3.2trn (US$478bn) was allocated to various infrastructure projects, of which 56% went towards railways. This has had a significant positive impact on the financial performance of Chinese infrastructure companies in 2009. China Railway Construction Corporation and China Railway Group, China's two largest state-owned railway construction companies, saw revenues increase by 57% and 48% in 2009 respectively, as compared with 28% and 27% in 2008.

The unwinding of stimulus measures will therefore reduce the number of new projects available. However, the sheer size of China's infrastructure landscape and the relative low level of development in the country's central and western provinces mean that there is still much scope for infrastructure investment over the long term. China has 20% of the world's population, but the country only has 5.5% of the world's railways and 5.6% of the world's roads. In absolute numbers, the country has 75,500km of railways while Russia and the US have 87,000km and 226,000km of railways respectively, according to the latest available data. The Chinese government is keen to meet this transport deficit, and according to government plans, railways will be extended to 100,000km by 2020, while the total length of roads will reach 3mn km. Total length for expressways will also reach around 100,000km by 2020, as compared with a total length of 60,300 km in 2008. As such, given China's strong growth potential and favourable business environment for its own state-owned firms, we expect Chinese infrastructure majors to continue to derive the bulk of their revenues from the Chinese market over the long term.

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Report Table of Contents:

Competitive Landscape Analysis
- Table: Selected Financial Highlights (US$mn)
- Table: Company Name
Company Profiles
- China Railway Construction Corporation (CRCC)
- China Railway Group
- Shanghai Construction Group (SCG)
- China Communications Construction
- China State Construction Engineering Corporation (CSCEC)
- Sinohydro
- China Metallurgical Group Corporation
- China Gezhouba Group Corporation (CGGC)
Market Attractiveness Analysis
- Market Overview
- Table: Investments In Fixed Assets By Industry, June 2008
- China's Stimulus Plan
SWOT Analysis
- China Infrastructure SWOT
- China Infrastructure Project Finance SWOT
Risk-Reward Ratings
- China Business Environment
- Rewards
- Risks
- Regional Overview
- Asia Pacific Infrastructure Business Environment Ratings
- Table: Asia Pacific Infrastructure Business Environment Ratings
- China Project Finance Ratings
- Design And Construction
- Commissioning And Operating
- Overall Project Finance Rating
- Regional Overview
- Project Finance Ratings: Outlook For Asia Pacific
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
Business Development Directory

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.