How can you make money by betting on "new infrastructure" after the crisis?

Hello everyone, I am the special investment expert of Cainiao Financial Management: Captain

New infrastructure is undoubtedly the hottest thing in the market now.

Since March, 7 public funds have reported index funds related to "new infrastructure".

Not long ago, China Securities Index Company also revised the compilation plan of infrastructure-related indexes, and the two infrastructure indexes became "new infrastructure" indexes.

Now that the concept of "new infrastructure" has become popular, how can we get a share of it?

The first official mention of “new infrastructure” was at the 2018 Central Economic Work Conference.

Since this year, officials have emphasized this many times

There are deployments from above and actions from below.

According to statistics, among the special bonds issued by local governments, the proportion of investment in new infrastructure has increased from 0.6% in 2019 to 3.9% in January 2020. compared with 14.8% in February.

Many provinces have recently released a list of investment plans for key projects in 2020. The announced investment amount has so far exceeded 30 trillion yuan, including many new infrastructure projects.

After seeing this, you may be wondering, why is the word "new" added in front of infrastructure?

In the past few years, the entire society has been discussing the issue of "GDP guarantee 6".

Because my country’s annual GDP growth rate has experienced a 10-year period of rapid growth since 1998, but has gradually declined since 2010, from 10.64% in 2010 to 6.91% in 2015.

Since then, it has entered the 6th era, and the growth rate every year since then has been between 6% and 7%.

Obviously, our country's economy has been facing downward pressure in recent years, which shows that it is no longer feasible to rely on old methods and old roads to grow the economy.

This is normal. Any country will experience a stage of deceleration in economic growth after rapid growth.

But unlike other developed countries, our country still has a lot of room for improvement. It can also stimulate the economy to continue to rise through a series of reforms and innovations. Speaking professionally One point is to bring new impetus for growth, transformation, and upgrading to the economy.

New infrastructure is one of the driving forces, and it can even be said to be the main driving force.

However, since new infrastructure is not a new concept, why has it suddenly become popular recently?

Many food lovers may have thought that it is not because of the impact of the new coronavirus epidemic on the economy.

While already facing downward pressure on the economy, the emergence of the epidemic has added more pressure to the domestic economy. At the same time, it has to face the fact that there is no clear turning point for the overseas epidemic. the uncertainty risks brought about.

This undoubtedly strengthens the urgency of "countercyclical adjustment through new infrastructure and other methods". It is also an inevitable product in the context of the era of "big changes unseen in a century."

Above, we discussed “why”. To understand more thoroughly, you have to ask "what".

First, what is infrastructure?

Simply understood, infrastructure is a series of infrastructure construction that serves the national economy and life, such as the construction of roads, railways, tracks, bridges, various industrial buildings and other projects. Only with these infrastructures can the social economy have a foundation for sustainable development.

In the past, infrastructure investment has indeed been driving domestic economic growth.

For example, at the end of the last century, in response to the Asian financial crisis, my country carried out large-scale major infrastructure construction such as railways, highways, airports, and water conservancy, commonly known as "railway infrastructure."

This promotion will play a certain role in leveraging the advantages of the labor force, improving the efficiency of economic operation, and thus promoting economic development.

In the “Four Trillion Plan” launched in 2008, funds were mainly invested in the “Iron Public Foundation”.

Subsequently, GDP growth also rebounded significantly, with the data in 2008 being 9.65% and the data in 2010 being 10.64%.

However, while infrastructure investment drives economic growth, it also brings some disadvantages:

In recent years, everyone has You should be able to clearly feel the pressure brought by the rapid growth of housing prices, and there are also some industrial overcapacity issues that need to be resolved urgently.

This is also a further explanation of why "new" is needed.

So what’s new? What exactly is new infrastructure?

In fact, there is currently no clear definition of "new infrastructure".

When the Central Committee of the Communist Party of China mentioned new infrastructure, it listed several areas, but they were all summarized with "etc."; some securities companies also divided the new infrastructure into seventeen areas. CCTV has previously proposed seven major areas of new infrastructure:

5G infrastructure, UHV, intercity high-speed railway and intercity rail transit, and new energy vehicle charging piles , big data center, artificial intelligence, industrial Internet.

A brief expansion:

5G infrastructure is an iteration of 4G and is the most fundamental and most capable of new infrastructure. Communication infrastructure that links with other areas for collaborative development.

Ultra-high voltage: This is the focus of power grid construction and is also beneficial to the development of new energy industries such as photovoltaic and wind energy.

Intercity high-speed railways and intercity rail transit: This part is actually included in the old infrastructure. Nowadays, the focus of construction is concentrated on a few core city groups.

New energy vehicle charging piles: serving the infrastructure construction of the new energy vehicle industry. The industrial chain of new energy vehicles is large, so

It is in the new Infrastructure is also important.

Big data center: This is the infrastructure of cloud computing. The construction of a big data center requires a series of supporting supports and can drive a wide range of industries.

Artificial intelligence, industrial Internet and big data centers can actually be regarded as applications of 5G.

Of course, new infrastructure is not limited to these areas.

In the final analysis, new infrastructure is ultimately to provide new economic momentum, and the key to obtaining new momentum is to shift from "high-speed growth" to "high-quality growth."

In this transformation process, the direction and strategy of the "metropolitan area" are particularly important.

In the past two years, everyone should also be able to feel that there are more and more references and policies for "metropolitan areas". With reference to the experience of developed countries such as the United States and Japan, the construction of Metropolitan areas seem to have become an inevitable choice.

Therefore, any infrastructure with technology as the core that is conducive to the formation of metropolitan areas can actually be regarded as new infrastructure, such as smart cities, education and medical care, etc. Upgrades and construction, etc.

In the future, with the government taking the lead and enterprises joining forces, these new infrastructures will create new jobs and incomes and drive the development of emerging industries by creating new demand. Create more valuable companies and provide strong support for economic growth.

But this does not mean that old infrastructure must be abandoned. Only when new and old infrastructure work together can the economy be better revitalized

Finally, let’s talk about the question of “can I invest and how to invest?”

From a large perspective, with vigorous deployment, the future development trend of these industries is good, and the corresponding sectors will most likely become the key players in the future stock market. mainline opportunities.

However, in the short term, affected by factors such as insufficient performance support, high valuations, and the epidemic, technology stocks as a whole have fallen significantly, and there is short-term uncertainty. Still huge.

Therefore, everyone must focus on the timing of entry and the direction of stock selection. The captain thinks that everyone can focus on these two sectors:

The first is 5G. The long-term certainty is relatively good, including applications such as 5G infrastructure and big data centers, artificial intelligence, and industrial Internet. There is a lot of room in the future.

However, based on valuation considerations, the valuation of 5G is relatively high, and the overall market is still unclear at present. You can wait for the valuation to drop a bit before buying.

The second is new energy vehicles. Affected by the international epidemic, this sector is expected to undergo adjustments for a period of time, but after the adjustment, the investment value of the entire industry chain is still relatively high.

Well, that’s all about the new infrastructure. If you have any ideas, please leave a message to share~