Recently,”new infrastructure” has been frequently mentioned in government meetings and various documents, which has become a hot topic in the capital market and attracted the attention of countless investors. What exactly is a new infrastructure? Why is the market hot? Can the new infrastructure really become the next vent as expected by the market? How should investors seize investment opportunities? Dr. An will talk with you today.
- New infrastructure vs. traditional infrastructure
In fact, the term infrastructure is likely to many investors No stranger, but the infrastructure we often hear in the past mainly refers to the investment and construction of infrastructure projects such as railways, highways, rail transit, and real estate. The concept of new infrastructure was first proposed at the Central Economic Work Conference at the end of 2018, when the conference clearly stated that”to play a key role in investment, increase manufacturing technology transformation and equipment updates, accelerate the pace of 5G commercial use, and strengthen artificial intelligence, industrial Internet, New infrastructure construction, such as networking, ”has since gradually deepened the deployment of the“ new infrastructure ”work in China. With the resonance of a series of multiple factors at home and abroad since the beginning of 2020,”new infrastructure” has once again become a hot topic in the market. At present, what we call”new infrastructure” includes seven major areas:5G infrastructure, UHV, intercity high-speed railways and urban rail transit, new energy vehicle charging piles, big data centers, artificial intelligence, and the industrial Internet.
Simply speaking, compared with traditional infrastructure, the biggest difference between new infrastructure and traditional infrastructure lies in the manifestation of the characteristics of the digital economy. And an important means to improve people ’s living standards, then the new infrastructure is focused on highlighting the trend of industrial transformation and upgrading, accelerating the high-end development of the industry, and more conducive to the adjustment of China’s economic structure , in line with China’s current stage of economic development Transformation direction.
- Why should we vigorously develop”new infrastructure”
China’s economy is at a stage of conversion of old and new kinetic energy. Traditional infrastructure construction can no longer meet the requirements of economic development. Science and technology innovation is the core driving force of the new economy and the main theme of the times. The development in the field of science and technology will continue to inject new vitality through technological innovation and product changes. The new infrastructure focuses on the construction of science and technology-side infrastructure, and focuses more on the development model of light assets, high-tech content, and high added value.
Also, In terms of industrial structure, new infrastructure can effectively adjust the economic structure and help traditional industries to upgrade and transform. At the same time, it has a synergistic effect on other industries such as service industries and emerging manufacturing industries. .
The areas covered by the new infrastructure include 5G, artificial intelligence, industrial Internet, and the Internet of Things.
- Can the new infrastructure be the next outlet as the market expects?
Since the beginning of 2020, the new infrastructure has been frequently mentioned in various government department meetings and various documents . At the executive meeting at the beginning of the year, the emphasis was placed on”developing advanced manufacturing industries, introducing new infrastructure investment support policies such as information networks, and advancing smart and green manufacturing.” This also indicates the policy-supportive attitude towards new infrastructure.
In addition, the local government’s support for new infrastructure construction can be seen in the construction plans of key projects in most provinces.
According to the China-Thailand Securities Research Institute, it is estimated that the scale of new infrastructure will be 3.3 trillion in 2020, a year-on-year increase of 26%. By 2025, the scale of new infrastructure will maintain a compound annual growth rate of 15%. In 2019, the overall infrastructure investment growth rate is only 3.8%, and the new infrastructure growth rate is significantly higher than the overall infrastructure investment growth rate. It is expected that the new infrastructure scale will fall to 6.25 trillion yuan by 2025, becoming a new driving force for economic development.
Xu Xiaoyong, assistant general manager and investment director of Changan Fund also believes that” The new infrastructure has begun and there will still be a lot of room for development in the future. For example, 5G hardware and network construction , Which has been started in 2019, will accelerate this year, and will continue to expand globally in the future. The development of data centers in China is earlier and longer. With the subsequent development of information technology and network economy, 5G Internet of Things and artificial intelligence The demand is more robust, and the construction of data centers will continue to advance in the future. At the same time, benefiting from the government’s vigorous promotion, it is expected that the stock prices of new infrastructure related stocks will also be reflected in the secondary market in advance.
- How do we vote?
The new infrastructure covers a wide range of areas. How should we grasp the main investment line? In response to this problem, we asked President Xu Xiaoyong.
He believes that the new infrastructure construction as a key government department deployment work will be of great help to the future development of China ’s core technology, so it is important to grasp the main line of scientific and technological innovation. Among them, 5G Internet of Things and artificial intelligence, data center cloud computing, intelligent hardware, networks, and new energy vehicles are all sub-sectors that can be focused on.
In his view, 5G IoT and artificial intelligence are in a global resonance megatrend. U.S. chip and cloud computing companies have previously Considerable increase. Recent investor exchange activities carried out by related companies show that mainstream American companies have large and continuous investments in the chip and cloud computing fields, so there may be more investment opportunities in related fields. Of course, the current focus is on whether the valuation of this field is too high. This point needs to be compared and analyzed from the perspectives of relevant companies’ valuation, growth, and market space.
In addition, after the 5G application field, with the successful deployment of the new infrastructure, its late application space is very large. At this stage, its application is mainly focused on media and entertainment, and it will be launched in all aspects of production and life. For example, in this public health incident, off-site office and online economy have performed more prominently.
In addition, in terms of the new energy vehicle industry chain, President Xu believes that following the heavy sales of Tesla, the launch of Volkswagen’s new platform in China, and the subsequent advancement of BMW Benz, this may be a The long-term, global resonance investment direction is an industry chain worth investing in.
Of course for ordinary investors, they want to participate in a new infrastructure In fact, the upsurge is still more difficult. After all, there are many concept stocks related to new infrastructure in the entire market. There may be hundreds of 5G related concept stocks, and it is difficult to imagine how difficult it is to choose stocks. Moreover, in the face of the current high volatility of the market, timing is also difficult. Therefore, choosing some funds that are related to the concept of”new infrastructure” and participating in fixed investment may be a more effective method at present.