BOCI Research-Industry update
A total of 28 countries have confirmed to attend the upcoming Belt and Road (B&R) Summit to be held on 14-15 May 2017. We see the B&R Summit as one of the most important diplomatic events of late. Virtually all major media companies have set up a dedicated page or section to provide updates on the summit, while most state leaders have arrived in or are on the way to Beijing. Just before the summit, China Communications Construction (CCCC, 1800 HK) has signed a strategic cooperation agreement with Export-Import Bank of China (Exim Bank) for RMB200bn. We expect more MOU of a similar nature to be signed and some contracts to be announced in the near term. We reaffirm CCCC, CRRC Corp (1766 HK), China Railway Signal (CRSC, 3969 HK), Zhuzhou CRRC Times (3898 HK), and China Machinery Engineering (CMEC, 1829 HK) as our top BUYs.