According to the CITIC Construction Investment Research Report, the Party Central Committee and the State Council issued “Opinions on Developing New Quality Productivity”, and the design of a top-level system for developing a new quality of productivity has been completed. The State Assets Administration Commission has actively implemented the Party Central Committee's arrangements, and central state-owned enterprises have intensively adjusted their business layout. The State Assets Administration Commission has made it clear that central enterprises plan ahead in the construction of the “six networks” of water grids, new power grids, computing power networks, next-generation communication networks, urban underground pipelines, and logistics networks. The annual investment plan is about 2 trillion yuan. In the fourth quarter of 2026, we recommend investors adopt a balanced investment strategy to build their portfolios. The technology sector rose sharply in the first half of 2026, and the traditional sector fell sharply, resulting in a huge valuation gap. The upgrading of traditional industries, specialized integration of traditional industries, and correction of internal competition will bring opportunities to reverse the plight of the undervalued sector. We suggest increasing the share of high-quality central enterprises in the fields of coal, electricity, real estate, banking, etc.

According to the CITIC Construction Investment Research Report, the Party Central Committee and the State Council issued “Opinions on Developing New Quality Productivity”, and the design of a top-level system for developing a new quality of productivity has been completed. The State Assets Administration Commission has actively implemented the Party Central Committee's arrangements, and central state-owned enterprises have intensively adjusted their business layout. The State Assets Administration Commission has made it clear that central enterprises plan ahead in the construction of the “six networks” of water grids, new power grids, computing power networks, next-generation communication networks, urban underground pipelines, and logistics networks. The annual investment plan is about 2 trillion yuan. In the fourth quarter of 2026, we recommend investors adopt a balanced investment strategy to build their portfolios. The technology sector rose sharply in the first half of 2026, and the traditional sector fell sharply, resulting in a huge valuation gap. The upgrading of traditional industries, specialized integration of traditional industries, and correction of internal competition will bring opportunities to reverse the plight of the undervalued sector. We suggest increasing the share of high-quality central enterprises in the fields of coal, electricity, real estate, banking, etc.