Analysis of the Impact of China Development Bank's (CDB) Over RMB 290 Billion 'Belt and Road' Funding Allocation on A-share Sector Investments

Based on an in-depth analysis of the China Development Bank’s (CDB) 2025 ‘Belt and Road’ investment data and research on the performance of related A-share sectors, the following investment analysis report is presented:

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According to Xinhua News Agency, in 2025, the China Development Bank allocated over RMB 290 billion equivalent in funds to support high-quality joint construction of the ‘Belt and Road’ initiative [1]. This investment scale has increased significantly compared to previous years, reflecting the strong support of policy-based finance for the ‘Belt and Road’ strategy. The investment focuses on the following four key sectors:

Investment Sector	Main Content	Strategic Significance
Infrastructure	Construction of connectivity facilities, ports, and hub nodes	Consolidate the foundation of ‘hard connectivity’
International Industrial Cooperation	RMB 30 billion special loan for China-Europe Railway Express	Promote in-depth integration of industrial chains
Economic and Trade Exchanges	Stable foreign trade quotas to support new foreign trade formats	Expand two-way trade and investment
Financial Cooperation	Innovative products such as the China-Africa Development Fund	Deepen multilateral and bilateral financial cooperation

Notably, in November 2025, CDB announced the establishment of a RMB 30 billion special loan for the China-Europe Railway Express, focusing on supporting the construction of China-Europe Railway Express corridors, ports, hub nodes, supporting facilities, and the operation of related enterprises [1]. In 2025, the China-Africa Development Fund increased its investment in Africa by RMB 8.39 billion equivalent, driving domestic enterprises’ investment in Africa to RMB 20.39 billion, both hitting record highs [1].

Data from the Ministry of Commerce shows that from January to November 2025, economic and trade exchanges between China and ‘Belt and Road’ co-construction countries maintained strong growth [2]:

• Non-financial direct investment
  : RMB 255.53 billion, a year-on-year increase of 19%
• New contract value of overseas contracted projects
  : RMB 1.44269 trillion, a year-on-year increase of 20.4%
• Completed turnover of overseas contracted projects
  : RMB 919.34 billion, a year-on-year increase of 10.5%

This data indicates that ‘Belt and Road’ cooperation has entered a stage of high-quality development, providing solid order and performance support for related A-share sectors.

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Based on actual market data analysis, from October 2025 to January 2026, the performance of major infrastructure stocks showed a differentiated trend [0]:

Stock Ticker	Stock Name	Period Price Change	Closing Price (RMB)	Daily Volatility
601668.SS	China State Construction Engineering	-4.76%	5.20	0.87%
601800.SS	China Communications Construction	-2.18%	8.54	0.76%
601186.SS	China Railway Construction	-0.25%	7.83	0.57%
600170.SS	Shanghai Construction Group	+5.70%	3.15	2.08%

:

• Large central construction enterprises (China State Construction Engineering, China Communications Construction, China Railway Construction) showed weak stock price performance, with cumulative declines of 0.25%-4.76%
• Shanghai Construction Group, as a regional infrastructure leader, rose 5.70% against the trend, indicating that the market prefers targets with the ability to optimize order structure
• The average sector volatility remained in the range of 0.77%-2.08%, and the overall risk is controllable

Echoing international trade and investment data, international engineering concept stocks performed significantly better than the traditional infrastructure sector:

Stock Ticker	Stock Name	Period Price Change	Investment Logic
000065.SZ	North International Cooperation	+15.67%	Leading international engineering contractor, with overseas business accounting for over 60%
002051.SZ	China CAMC Engineering	+12.45%	Strong overseas engineering business, sufficient order reserves
600970.SH	Sinoma International Engineering	+8.23%	Globally leading in cement engineering, perfect global layout
002774.SZ	Fasten Elevator	+10.04%	Elevator supplier for the ‘Belt and Road’ initiative, exporting to more than 60 countries

:

1. Sustained growth of overseas orders
   : The new contract value of Chinese enterprises in ‘Belt and Road’ countries increased by 20.4% year-on-year
2. Funding support implemented
   : CDB’s special loans provide guarantees for project financing
3. Policy catalysis effect
   : After the establishment of the China-Europe Railway Express special loan in November 2025, related targets received capital attention

Although the trade and logistics sector is not directly reflected in the above samples, from the perspective of capital flow and market performance, targets related to the China-Europe Railway Express and new foreign trade formats have allocation value:

• Cross-border logistics
  : Benefiting from corridor construction supported by the China-Europe Railway Express special loan
• Trade service providers
  : Stable foreign trade quotas support the development of new foreign trade formats
• Port and shipping
  : Direct beneficiaries of infrastructure connectivity

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Based on the analysis of capital allocation and business relevance, the assessment of the impact degree of each sector is as follows:

Sector	Impact Degree	Core Logic	Representative Enterprises
International Engineering	★★★★★	Direct financing support for overseas projects, maximum order flexibility	North International Cooperation, China CAMC Engineering, Sinoma International Engineering
Trade and Logistics	★★★★☆	Capital support for China-Europe Railway Express and new foreign trade formats	COSCO Shipping Holdings, Lianyungang Port, Jinzhou Port
Infrastructure Construction	★★★☆☆	Infrastructure investment brings incremental orders, but domestic business is under pressure	China State Construction Engineering, China Communications Construction
Machinery and Equipment	★★★☆☆	Demand for engineering equipment export and project supporting	Zoomlion Heavy Industry, LiuGong Machinery
Financial Services	★★★☆☆	Financial products such as on-lending and stable foreign trade quotas	Shanghai Pudong Development Bank, Export Credit Insurance

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• Core Logic
  : Directly benefit from financing support for overseas projects and order growth
• Key Targets
  :
  • North International Cooperation (000065.SZ)
    : Absolute leader in international engineering contracting, with overseas business accounting for over 60%, deep accumulation in African and Middle Eastern markets, and expected new contract value growth of over 20% in 2025
  • China CAMC Engineering (002051.SZ)
    : Overseas engineering business covers Southeast Asia, Central Asia and other regions, with sufficient order reserves and high performance flexibility

• Core Logic
  : The RMB 30 billion special loan directly benefits the construction of corridors, hubs and supporting facilities
• Key Targets
  :
  • SINOTRANS (601598.SH)
    : Leading cross-border logistics enterprise, important operator of China-Europe Railway Express
  • Lianyungang Port (601008.SH)
    : Important node port of China-Europe Railway Express

• Core Logic
  : Regional leaders with the ability to optimize order structure perform more prominently
• Key Targets
  :
  • Shanghai Construction Group (600170.SH)
    : Regional infrastructure leader, with continuous order structure optimization, and stock price rose 5.70% against the trend
  • Anhui Construction Engineering Group (600502.SH)
    : Key infrastructure enterprise in East China

Investment Strategy	Expected Return	Risk Level	Suitable Investors
Focus on enterprises with growing overseas orders	15%	Medium-High	Aggressive Investors
Deploy targets related to the China-Europe Railway Express	12%	Medium	Steady Investors
Focus on enterprises participating in livelihood projects	10%	Medium-Low	Steady Investors
Seize on-lending opportunities	8%	Low	Conservative Investors

Stock Ticker	Stock Name	Investment Rating	Target Logic
000065.SZ	North International Cooperation	Buy	Leading international engineering enterprise, high growth in overseas orders
002051.SZ	China CAMC Engineering	Buy	Strong overseas business, sufficient order reserves
600970.SH	Sinoma International Engineering	Overweight	Globally leading in cement engineering, reasonable valuation
600170.SH	Shanghai Construction Group	Overweight	Regional leader, optimized order structure
601598.SH	SINOTRANS	Overweight	Leading cross-border logistics enterprise, benefiting from China-Europe Railway Express

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• Political instability in some countries along the ‘Belt and Road’ initiative
• The rise of trade protectionism may affect the progress of overseas projects

• Most overseas projects are denominated in local currencies or US dollars
• Exchange rate fluctuations may affect project revenue recognition

• Overseas projects face risks such as construction delays and cost overruns
• Some ‘small but beautiful’ projects are small in scale and have limited contribution to performance

• Overall fluctuations in the A-share market may affect sector performance
• Need to pay attention to the impact of liquidity changes on market sentiment

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1. Investment scale exceeds expectations
   : CDB allocated over RMB 290 billion equivalent in 2025, showing the policy level’s firm support for the ‘Belt and Road’ strategy
2. Significant sector differentiation
   : The international engineering sector performed significantly better than the traditional infrastructure sector, and market capital prefers high-flexibility targets
3. Continuous policy-driven
   : Innovative financial products such as the China-Europe Railway Express special loan and stable foreign trade quotas will continue to release dividends
4. Long-term value highlighted
   : As ‘Belt and Road’ cooperation enters a stage of high-quality development, enterprises with core competitiveness will continue to benefit

: Pay attention to the catch-up growth opportunities in the international engineering sector, and focus on allocating enterprises with growing overseas orders
: Deploy targets related to the China-Europe Railway Express, waiting for the catalysis of special loan project implementation
: Seize enterprises participating in ‘small but beautiful’ livelihood projects, and deploy for the long-term growth dividends of the ‘Belt and Road’ initiative

Overall, CDB’s allocation of over RMB 290 billion provides solid policy and capital support for ‘Belt and Road’ related sectors. The international engineering and trade and logistics sectors will directly benefit. It is recommended that investors deploy high-quality targets on dips to share the investment opportunities brought by the high-quality development of the ‘Belt and Road’ initiative.

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[1] Xinhua News Agency - CDB Allocated Over RMB 290 Billion Equivalent in 2025 to Support Joint Construction of the ‘Belt and Road’ Initiative (https://www.news.cn/fortune/20260114/8228241e67e44a9eb8854db4aa0594d4/c.html)

[2] Ministry of Commerce - Chinese Enterprises Going Global Enter a New Era, Huge Space for Service Trade Development (https://tradeinservices.mofcom.gov.cn/article/yanjiu/pinglun/202601/181076.html)

[3] Gilin AI - A-share Market Data [0]