China sector outlook positive – JP Morgan

China sector outlook positive – JP Morgan
Published: 23 June 2011

Reports by the Shanghai Securities News report that China’s top economic planner has issued guidelines allowing local governments to issue bonds to finance social housing construction, this is likely to boost cement going forward. JPMorgan estimates 36 million units of social housing will translate into around 400-450Mt of cement demand in 2011-2015, or on average 100-150Mta. "This volume is significant." The house remains positive on the sector’s long-term structure story, and its preference is large cap leading suppliers.