[SMM Steel Market Morning News] Local mapping of reserve infrastructure, new infrastructure of REITs projects may become an important starting point.

News breakfast

"rising factors

1. The State Council deploys trillion yuan of special bonds to focus on supporting two new and one important projects.

On July 15, Premier Li Keqiang presided over an executive meeting of the State Council, calling for the good use of local government special bonds, strengthening the docking of funds and projects, and improving the efficiency of the use of funds. According to the meeting, as of mid-July, 3.75 trillion yuan of new local government special bonds approved by the National people's Congress had issued 2.24 trillion yuan and spent 1.9 trillion yuan, all of which had been used to make up for major shortcomings. it has played a positive role in dealing with the impact of the epidemic, expanding effective investment, and stabilizing the basic market of the economy.

2. Local mapping of reserve infrastructure, REITs projects, new infrastructure may become an important starting point.

The reporter learned that during this period, many places have been mapping out the reserve infrastructure REITs project. The place needs to fill in the project name, location, pilot industry, project operation time, project income source, basic asset ownership and so on. Among them, the PPP project can also be used as a reserve project, and new infrastructure projects are also included. For the development of public offering REITs, some industry insiders predict that the scale of China's public infrastructure REITs market will reach trillions of yuan in the future. "at present, the domestic public offering REITs system has not yet been fully established, and the traditional infrastructure is still the foundation, but the new infrastructure will be an important starting point." Said the vice president of the structured financing department of a medium-sized securities firm.

Downside factor

1.MLF failed to cut interest rates for three months in a row.

On July 15, the people's Bank of China launched a medium-term loan of 400 billion yuan to facilitate (MLF) operation. This MLF operation is for one year, and the interest rate is 2.95%, which is the same as last time. MLF interest rates have remained at 2.95 per cent for the third month in a row since May. As a bellwether of LPR, MLF interest rates remain flat, which most likely means that this month's LPR rate cut will fail.

2. Passenger Association: overall car retail sales fell 9% from July 1 to 12 compared with the same period last year.

According to the federation, retail sales in the car market got off to a weak start in July, with daily retail sales averaging 25000 vehicles in the first week of July, down 15 per cent from a year earlier and 3 per cent lower than in the first week of June. Retail performance was weak in the first week. Retail sales in the second week of July averaged 31000 vehicles a day, down 5 per cent from a year earlier and 21 per cent from the same period in June. Overall retail sales fell 9% from July 1 to 12 from a year earlier, down 15% from the same period in June.

3. China Meteorological Administration: heavy rainfall will be maintained in the upper reaches of the Yangtze River in the next 10 days.

Wang Zhihua, deputy director of the Department of Emergency Mitigation and Public Service of the China Meteorological Administration, said on the 15th that heavy rainfall in the upper reaches of the Yangtze River is expected to maintain in the next 10 days, with obvious superposition effect and high risk of causing disaster. it is necessary to continue to do a good job in flood control in major rivers and lakes such as the Yangtze River, Poyang Lake, Dongting Lake and Taihu Lake. During the period of "seven under eight", the main rain belt will carry north to Huang-Huai and North China to the central and southern part of Northeast China, and it is necessary to strengthen flood control in the northern part of the Huaihe River Basin, the middle and lower reaches of the Yellow River, the Haihe River Basin, the Liao River Basin and the Songhua River Basin.

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