HK Stock Market Move | Infrastructure stocks perform strongly, CRRC Corporation (01766) rose more than 9% after exceeding expectations, the expectation of increased investment in infrastructure under export pressure.

Infrastructure stocks performed strongly as of the time of writing. CRRC Corporation (01766) rose by 8.96% to HK$4.5, China Communications Construction (01800) rose by 5.59% to HK$4.72, China Railway Signal & Communication Corporation (03969) rose by 5.03% to HK$3.13, and China Railway (00390) rose by 3.82% to HK$3.26. On the news front, CRRC Corporation announced that it expects to achieve a net profit attributable to the shareholders of the listed company of 2.822 to 3.226 billion yuan in the first quarter of 2025, an increase of 1.814 to 2.218 billion yuan compared to the same period last year, a year-on-year increase of 180% to 220%. The growth in performance is mainly due to an increase in product sales compared to the same period last year. In addition, according to a report by The Paper, nearly a hundred listed companies announced after-hours buying back shares; on April 7th, Central Huijin, China Chengtong, China Guoxin, China Electronics, and other national teams successively announced additional share purchases. CITIC Securities pointed out that as the trade war between China and the United States escalates and export pressure increases, there may be expectations for increased infrastructure investment. In 2025, the overall fiscal policy is expected to be more positive, with increased support from the funding side, continuing debt conversion policies, and demand and funding jointly supporting marginal improvement in the infrastructure fundamentals. The bank pointed out that the focus sectors driving investment include road and bridge construction, water conservancy, rail transit, and municipal administration. Huatai also indicated that domestic infrastructure investment is expected to strengthen and drive the sector, with relative optimism in subsectors such as cement, engineering pipelines, local state-owned enterprises, and the Belt and Road Initiative.