China Galaxy Securities released a research report indicating a rebound in new order sentiment for the construction sector, while fixed-asset investment growth continues to slow. During the "15th Five-Year Plan" period, over 700,000 kilometers of underground pipeline networks are expected to be constructed or upgraded, generating additional investment demand exceeding RMB 5 trillion. The report advocates moderately advancing new infrastructure, optimizing government investment, and high-quality collaboration under the Belt and Road Initiative. Key investment themes include stable growth, high-dividend stocks, overseas expansion, new infrastructure, and regional development.

**Key Insights:** 1. **Construction Sector Recovery:** - The Construction PMI rose to 49.3% in September, up 0.2 percentage points (pp) month-on-month (MoM). - New orders index improved to 42.2% (+1.6pp MoM), while input prices dropped to 47.2% (-7.4pp MoM). - Employment index declined to 39.7% (-3.9pp MoM), but overall sector sentiment showed signs of recovery. - Fixed-asset investment (excluding rural households) fell 0.5% YoY in Jan-Sep, with growth slowing by 1pp from Jan-Aug.

2. **Infrastructure Slowdown & Pipeline Opportunities:** - Broad infrastructure investment growth decelerated to 3.34% YoY (Jan-Sep), down 2.08pp from prior data. - Utilities (power/heat/gas/water) investment grew 15.3% YoY (-3.5pp MoM), while transport/warehousing rose 1.6% (-1.1pp MoM). - Water/environment/public facilities investment declined 2.4% YoY (-2.2pp MoM). - RMB 3.68 trillion in special bonds were issued by September (83.6% of annual quota), supplemented by RMB 1.3 trillion ultra-long special bonds as of mid-October, ensuring funding for projects. - Q4 infrastructure investment is expected to bolster economic stability.

3. **Real Estate Trends:** - Property investment fell 13.9% YoY (Jan-Sep), with sales area down 5.5% (-0.8pp MoM). - New starts (-18.9% YoY) and completions (-15.3% YoY) saw narrower declines, signaling potential balance in 2025 as policies ease inventory pressure. - Policy support (lower down payments/mortgage rates) aims to stabilize demand and developer financing, fostering sector recovery.

**Investment Recommendations:** - Focus on stable growth (pipelines, utilities), high-dividend stocks, overseas expansion, and new infrastructure (e.g., low-altitude economy, robotics, computing). - Regional opportunities include Xinjiang’s coal-chemical projects and nuclear power/cleanroom engineering.

**Risks:** - Declines in fixed-asset investment or new contracts. - Delays in receivables collection. - Policy or external uncertainties.