CHINA LESSO Surges Over 7% on Infrastructure Investment Tailwinds

Stock News05-29 10:00

CHINA LESSO (02128) rose more than 7%, gaining 7.21% to HKD 4.76 at the time of writing, with a turnover of HKD 16.98 million.

The State Council has issued the "15th Five-Year Plan for Urban Renewal," which includes measures to strengthen urban infrastructure construction and renovation. The plan emphasizes the implementation of construction and renovation for urban underground pipelines and utility tunnels. It calls for conducting inspections of urban underground pipeline networks and accelerating the renewal and renovation of aging pipelines for gas, water supply, drainage, sewage, and heating systems, while promoting the construction of comprehensive underground utility tunnels based on local conditions.

According to disclosures from the National Development and Reform Commission, from 2026 to 2030, China will construct and renovate over 700,000 kilometers of underground pipelines, driving new investments exceeding RMB 5 trillion, with an annual market scale of approximately RMB 1 trillion.

Analysts previously noted that as the inaugural year of the 15th Five-Year Plan, the state will prioritize advancing infrastructure in six key networks: water, power grid, computing power, new communication networks, urban underground pipelines, and logistics, along with other critical sectors. The substantial investment in underground pipelines is expected to create a market space of RMB 1.5 to 2 trillion for the pipe materials industry, with industry prospects continuing to improve.

As a leading enterprise in China's plastic pipe industry, CHINA LESSO, leveraging its accumulated core strengths over the years, stands as one of the most competitive beneficiaries of this round of infrastructure investment in the "six networks."

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