CITIC Securities: In July, there may be a wave of domestic demand policy trading opportunities in China.

The research report of CITIC Construction Investment showed that the Yaxia Hydropower Project officially started construction in July this year. Based on experience, it is estimated that the construction period of the Yaxia Hydropower Project will be about 10 years, with an annual investment of about 120 billion yuan, accounting for 0.85% of the annual average investment. The proportion will gradually decrease slightly in the later stage, and it is expected to increase the infrastructure investment by an average of 0.8% annually. The short-term cumulative multiplier of infrastructure investment is less than 1, but due to the capital overflow effect, the long-term cumulative multiplier of external effects is about 1.7 times. In the short term, the Yaxia Hydropower Project may drive the GDP of a single year by less than 0.09%; in the long term, the investment of 1.2 trillion yuan will drive a total of 2.04 trillion yuan of GDP increment in 10 years, with an average annual drive of about 0.15%. In July, there may be a wave of domestic policy trading opportunities in China.