HK Stock Market Move | CHINA LESSO(02128) rose more than 4% in the afternoon, the central government's financial funds subsidize the construction of urban underground pipe networks, and the company is expected to directly benefit.

CHINA LESSO (02128) rose more than 4% in the afternoon, up 4.32% to HKD 4.35 as of press time, with a turnover of HKD 32.4575 million. On the news front, on April 8, the Ministry of Finance and the Ministry of Housing and Urban-Rural Development issued a notice on the implementation of the urban renewal action supported by central finance in 2025. It mentioned that through three years of exploration, the level of basic infrastructure such as urban underground pipe networks will be significantly improved, the efficiency of domestic sewage collection and treatment will be further increased, the construction of livable environments in old areas will achieve significant results, and replicable and scalable models and experiences will be formed. Guosheng Securities pointed out that with increased government financial pressure easing due to debt conversion, there is room for repair in corporate balance sheets, municipal engineering projects are expected to accelerate, and the volume of work in municipal pipe networks and seismic isolation is expected to accelerate. Zhongjin also indicated that downstream demand for the company mainly comes from the completion of real estate and municipal infrastructure construction. The completion of real estate projects may continue to be under pressure in 2025, but infrastructure is expected to benefit from increased government spending and rapid deployment of debt conversion funds, leading to improvement in physical work volumes and potentially driving improvements in the company's receivables and cash flow.