The "Plan" has made a comprehensive deployment for the large-scale development of western China during the "12th Five-Year Plan" period and clearly put forward key tasks and major projects. First, infrastructure construction will continue to be given priority, and efforts will accelerate to build a modernized infrastructure system that is moderately advanced, functionally complete, safe and efficient with emphasis on transportation and water conservancy. Second, an ecological compensation mechanism will be accelerated in establishment, the intensity of ecological construction will be increased, environmental protection will be strengthened, and the trend of ecological deterioration will be reversed at its source... (the latter part about making money is not important).
In addition, the spatial development pattern of the western region during the "12th Five-Year Plan" period has been comprehensively planned. First, support will be provided for 11 key economic zones such as Chengdu-Chongqing, Guanzhong-Tianshui, and Beibu Gulf in Guangxi to take the lead in development. Second, support will be provided for eight main agricultural product production areas such as Hetao Irrigation Area to optimize their development. Third, support will be provided for five key areas such as the Northwest Grassland Desertification Prevention and Control Zone to achieve sustainable development. Fourth, support will be provided for eight resource-rich areas such as Panxi-Liupanshui to develop in a concentrated manner... (same above, not important).
Many people may feel that the concept of large-scale development of western China is outdated, but this time it's somewhat different, proposed at a higher level. It can be understood that this time the country is not just talking; it is going to take real action.
However, none of these are important. What's important is whether we can find opportunities to make money from all this.
Enough talk, let's get straight to the point.
Fortunately, there are relatively fewer listed companies in the entire west, so we can carefully select individual stocks!
First, look at the parts highlighted in bold: "infrastructure construction placed at the forefront, with transportation and water conservancy as the focus."
Under the background of the nationwide contraction of highway and high-speed rail construction, the continued acceleration of construction in the west is indeed commendable! However, here we should not choose construction stocks because the entire sector is still weak. Not selected~ But construction requires energy and basic materials. Coal basically offers no opportunities to make money, so I will focus on recommending chemical stocks in the west: Xinghua Shares, Northwest Chemicals, Yuntianhua, ST Nanfeng... Additionally, pay more attention to non-ferrous metals, such as Jinchuan Molybdenum Co., Ltd., Baotai Titanium Industry Co., Ltd.
For water conservancy, it's almost impossible to find one or two such stocks in the west. The only ones that barely count are some water utility stocks. We first recommend Capital Water Group (with substantial sewage treatment business in Shaanxi and Shanxi provinces and beginning to venture into waste disposal) and Chongqing Water Utility.
Speaking of optimizing the development of main agricultural product production areas, there are only Mogao Shares and Asia Prosperity Group. This is relatively easy to choose.
Finally, regarding the intensive development of eight resource-rich areas such as Panxi-Liupanshui: The best choice would undoubtedly be Panzhihua Vanadium & Titanium Industry Co., Ltd. (which owns important resources like iron ore, vanadium, and titanium)!
It cannot be ruled out that some western-related concept stocks might go public with the help of policy support, which will surely attract attention, and those with strength can participate.
One last point, the sequence of large-scale development of western China must be understood, which can help us choose stocks from short, medium, and long-term perspectives~
The general order is: building bridges and roads first (this will consume steel and cement) → supporting facilities (energy: coal, chemicals, water, environment) → attracting investment.
Another question is where does the money for construction come from? One is the national allocation, and the other is selling resources!