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　　industry analysis
 

　　In the "new normal", the Chinese economy is experiencing four throes of change: manufacturing to the capacity, the financial sector deleveraging, real estate to bubble, environmental decontamination, the performance of the economic slowdown, the decline in investment growth, serious excess capacity, declining corporate profitability, resulting in the decline in the construction industry demand, deteriorating fundamentals. With the real estate market is gradually look back left and implementation of major infrastructure projects, the construction industry bottomed rebound, industry fundamentals are expected to improve. May 2015 construction PMI stabilized, business activity is expected to stabilize, the new orders index rebounded strongly in the second half we determine the probability of a large rebound in the construction industry bottomed.
 

　　All the way along the production output
 

　　With the economic slowdown and inflation down, monetary policy easing trend is clearly, and there is a rate cut may be 2-3 times the RRR in the second half, Pratt & Whitney still loose force. Debt exchange plan has been opened, trillion debt limit gradually replaced decentralization, local government is expected to move forward with ease. ppp accelerating, the advent of a new round of local construction boom. SOE reform progressive outlet, mix change, war vote, ESOP, reclassifications, the overall market have become the focus of reform. "Along the way" into the second half, both through production output and export of capital to develop the overseas market, but also to stimulate the domestic demand for infrastructure trillion.
 

　　Gold Rush era
 

　　Under the new normal, traditional cycle enterprises difficult to maintain a rapid growth, have sought cross-border restructuring. Building cross-border corporate restructuring main directions: culture media, high education, military, general aviation, etc., types of cross-border restructuring reborn, double main industry type and the market value of managed three types of cross-border business must look at restructuring in "true hero", these enterprises need to have four factors: (1) restructuring capital, whether hand heavily; (2) the transition determination ,, more successful transition from top to bottom; and (3) transition preparation, team building and institution making; (4) the transition path, self propulsion integration and mergers and acquisitions.
　　Risk Warning: tightening, PPP has been slow, slow progress in the reform of state-owned enterprises and other risks. (Ping An Securities)
　　Investment Strategy
　　Layout five main recommendations
　　Follow the five main investment recommendations:
　　(1) "along the way", the preferred active layout, or small stocks. (2) PPP, active distribution of PPP, the PPP model to explore, signed orders and means of PPP PPP into new areas of concern may embark on extension of the development of the company. (3) cloud networking decoration, promising traditional architectural layout of the home improvement business networking in the cloud. (4) Transition companies, promising construction companies in the high education, film culture, general aviation and the like. (5) The state-owned enterprise reform, choose the subject of "Small companies, large group". Attention: Sue cross section, Anhui Water Resources, cloud Investment ecology. Ping An Securities.
 

Source: Guangzhou Daily