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The fund-guaranteed superposition policy escorts the traffic sector into the fast lane! These industries and companies benefit the most.
The Outline of Building a Powerful Transportation Country was issued! The superposition policy of guaranteed funds, the traffic sector entered the fast lane. These industries and companies benefit the most.

After paving the way for the special debt new deal in the early stage, the transportation sector has ushered in a policy east wind.

On September 19, the Central Committee of the Communist Party of China and the State Council issued the Outline of Building a Traffic Power, proposing that by 2020, all tasks of building a well-off society in an all-round way and the development plan of the "Thirteenth Five-Year" modern comprehensive transportation system will be completed, laying a solid foundation for building a traffic power. 202 1 by the middle of this century, the construction of a strong transportation country will be promoted in two stages. By 2035, it will basically become a transportation power.

From "Traffic Power" to "Traffic Power"

"To get rich, build roads first". Since the 70th anniversary of the founding of New China, this slogan has become a concept deeply rooted in people's hearts, which also shows that traffic as a leading indicator of the national economy has been generally recognized.

At the beginning of the founding of New China, the traffic in China was very backward. The total mileage of China Railway is only 22,000 kilometers. The highway mileage is only 8 1 000 kilometers, and there is no expressway. The inland waterway is 74,000 kilometers, of which the grade waterway is only 24,000 kilometers. The mileage of civil aviation routes is 1. 1 10,000 kilometers, and there are only 12 routes.

After 70 years of development, China's transportation field has undergone earth-shaking changes and become a veritable transportation power. According to the economic and social development achievement data of the 70th anniversary of the founding of New China released by the Bureau of Statistics on August 3rd, 20 18, the total railway operating mileage in China reached132,000 kilometers, which was five times higher than 1949, with an average annual growth rate of 2.6%. The total operating mileage of China high-speed railway is 30,000 kilometers, 44.5 times that of 2008, with an average annual growth rate of 46.2%. The operating mileage of high-speed rail exceeds two-thirds of the total mileage of high-speed rail in the world, ranking first in the world. The total highway mileage in China reached 4.85 million kilometers, 60.0 times that of 1949, with an average annual increase of 6. 1%. The mileage of rural roads reached 4.04 million kilometers, and the hardened roads in towns and villages reached 99.6% and 99.5% respectively. The total mileage of expressways is 1.43 million kilometers, with an average annual growth rate of 25.8%, ranking first in the world. Civil aviation has taken on a brand-new look, with the total number of scheduled flights reaching 4,945, which is 4 12. 1 times that of 1950, with an average annual growth rate of 9.3%.

According to the Outline of Building a Powerful Transportation Country, China's modern comprehensive transportation system has basically taken shape, and its ability to support modernization has also been significantly enhanced.

But at present, the domestic traffic situation is only from "overall relief" to "basic adaptation" to the development of the national economy. In order to support the sustained and rapid development of the national economy in the future, China urgently needs to complete the transformation from a "transportation power" to a "transportation power".

Special debt opens the way and construction funds are guaranteed.

To achieve the goal of becoming a transportation power, the guarantee of construction funds is obviously indispensable.

To this end, a new special debt policy was introduced in June this year, and transportation as an important area of infrastructure has also been highlighted.

The relevant person in charge of the Ministry of Finance made it clear at the special press conference in early September that the scope of use of special bonds in the field of infrastructure construction will be further expanded from the existing four fields to 10 fields, namely railways, toll roads, trunk airports, inland river shipping and power hubs, ports, urban parking lots, natural gas pipeline networks and gas storage facilities, urban and rural power grids, water conservancy, urban sewage and garbage treatment, and water supply.

In addition, the amount of special bonds issued in advance shall not be used for land reserve and real estate-related fields, nor for bond swap or fully commercialized industrial projects. In the future, the proportion of special bonds invested in infrastructure projects will also increase.

The data shows that from October to August, infrastructure investment, transportation, public facilities management and power industry increased by 5.5%, 2.4% and 0.4% respectively. In 20 19, the total investment in transportation plans of all provinces in China exceeded 3 trillion yuan, of which the investment in railway transportation and highway transportation increased by 1 1% and 7.7% respectively from June to August, which was higher than the growth rate of total investment in infrastructure. It can be seen that the transportation infrastructure such as railways and rail transit has been supported by special debt funds, and the entire transportation industry is also in a good state of prosperity.

CITIC Securities believes that the detailed implementation of the new special debt policy will further enrich the sources of funds for the steady growth of infrastructure and may increase the growth rate of infrastructure by 3-3.5 percentage points. As the key support object of special debt funds, transportation will play a greater role in infrastructure growth.

They are all on the tuyere, and the urban rail faucet benefits the most.

Superimposed policies and favorable funds, the transportation sector is considered to be in the investment outlet, and has driven the navigation, logistics and other related industries to achieve better development.

The Outline of Building a Powerful Transportation Country clearly proposes to develop "Internet++"efficient logistics and innovate smart logistics operation mode; Promote the application of Beidou satellite navigation system; Strengthen the research and development of intelligent networked vehicles (smart cars, autonomous driving, vehicle-road coordination) to form an independent and controllable complete industrial chain.

Analysts believe that related concept stocks such as car networking, autonomous driving and even 5G will continue to be favored by market funds.

Wang Changjun, director of the Traffic Management Research Institute of the Ministry of Public Security, said that the Internet of Vehicles is based on the traditional vehicle navigation and vehicle-road coordination technology, connecting cars with cars, cars with pedestrians, cars with non-motor vehicles, cars with clouds, and cars with traffic command centers. Together, it can not only effectively improve travel efficiency, but also better realize vehicle driving safety. The Internet of Vehicles can be described as an important technical support for building a transportation power. In the future, with the support of 5G networks, the Internet of Vehicles will be more integrated with autonomous driving to promote the continuous progress of intelligent transportation and intelligent logistics.

In view of the goal of "building a comprehensive transportation network of urban agglomerations, promoting the integrated development of trunk railways, intercity railways, urban (suburban) railways and urban rail transit, improving the expressway network of urban agglomerations and strengthening the connection between expressways and urban roads" proposed in the Outline of Building a Traffic Power, TF Securities believes that the field of urban rail transit will gain more support. It is estimated that the investment in urban rapid rail construction will exceed 700 billion yuan in 20 19-202 1 year, and companies engaged in urban rail transit engineering construction and design will benefit significantly, such as China Railway, China Railway Construction and China Jiao Jian, which are leading central enterprises in the rail transit market. In this regard, investors can remain concerned.

(Article Source: Broker China)

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