2015 is a crucial year for China's economic reforms; in particular, a series of top-level design of the development strategy will have a significant impact on the domestic economy. Specific to the transportation construction industry investment, especially road construction will face unprecedented opportunities for development. The national policy and the financial guide will push the domestic road investment to a new level.
In terms of the policies, in 2015, “One Belt And One Road”, “synergetic development of Beijing, Tianjin and Hebei Province”, “interconnection in the commodity market” are put on a more important position. Especially the “One Belt And One Road”, which covers the most infrastructure lagging areas, including China's western region, especially the railways, highways and other transportation facilities need to be perfect, and this is a huge potential. In 2015, the Ministry of Transport will strengthen cooperation with neighboring countries, accelerate the interconnection and transport facilitation process with neighbor regions, and expand pragmatic cooperation with ASEAN and other coastal states along the Maritime Silk Road. These will no doubt bring road construction and asphalt industry-related enterprises' new strategic opportunities, some leading companies are expected to step out of the country to international markets.
From the financial side, in 2014 the national funds face a relatively strict situation, so that part of the highways project had been shelved. In 2015, the financial side tension is eased gradually. First, the establishment of Asian Infrastructure Investment Bank will provide financial support for infrastructure development among countries, which has significant investment in the construction of the road; secondly, China stock market financing function shows up, in the first quarter of 2015, 17 out of 19 listed highway companies have their incomes increased. When the stock market value of listed companies increases, it will be conducive to the rapid financing of enterprises, in order to continue to invest in road construction.
So is the asphalt business, the current infrastructure and asphalt processing technology in surrounding regions, northwest and southwest areas of china are relatively backward, under the great national strategy and the large capital layout, the asphalt companies will usher in greater opportunities for development. Companies with advanced technology can reach to overseas markets, enhancing their competitive power.
