According to the CITIC Construction Investment Research Report, policies have been introduced intensively to seize the investment window for the building materials sector. The Development and Reform Commission and the Ministry of Finance held press conferences one after another. At the Ministry of Finance meeting, it was stated that future special bonds will be considered for land reserves, to support local governments to use special bonds to recover eligible vacant land, and to buy existing houses to increase the supply of affordable housing. CITIC Construction Investment believes that this move will help enterprises in the real estate industry chain repair their balance sheets, strengthen their cash flow capacity, reduce the risk of future impairment, and promote valuation restoration, especially for consumer building materials companies that were highly related to real estate in the past. Although the overall consumer building materials revenue side declined in the first half of the year due to completion, as various consumer building materials companies made efforts to change channels and increase the share of retail channels, most companies have continued to improve their operating cash flow situation. Currently, the consumer building materials sector already has allocation value.

According to the CITIC Construction Investment Research Report, policies have been introduced intensively to seize the investment window for the building materials sector. The Development and Reform Commission and the Ministry of Finance held press conferences one after another. At the Ministry of Finance meeting, it was stated that future special bonds will be considered for land reserves, to support local governments to use special bonds to recover eligible vacant land, and to buy existing houses to increase the supply of affordable housing. CITIC Construction Investment believes that this move will help enterprises in the real estate industry chain repair their balance sheets, strengthen their cash flow capacity, reduce the risk of future impairment, and promote valuation restoration, especially for consumer building materials companies that were highly related to real estate in the past. Although the overall consumer building materials revenue side declined in the first half of the year due to completion, as various consumer building materials companies made efforts to change channels and increase the share of retail channels, most companies have continued to improve their operating cash flow situation. Currently, the consumer building materials sector already has allocation value.