Week 28: The new Silk Road

Situation

• All along the Silk Road, China is importing human force and materials without really using local forces
• Trade war between China and USA puts more weight on Silk Road
• Local countries will not benefit immediately from the project
• Largest Infrastructure plan worldwide since Marshall Plan
• Chinese Banks are actively supporting the project
• The first road has been opened in only 22 months
• China is the absolute leader in this project
• New Silk-Road will join Europe and Asia
• China alone is investing 900 bn USD
• Chinese companies will be spoiled

Large and liquid Chinese companies specialized in infrastructure and transportation will clearly be on top position to benefit from the project:
 

• China Railway Construction Corp Ltd (1186 HK)
• China Railway Group Ltd (390 HK)
  Both companies are respectively leaders in transportation and infrastructure. They are main players in this project and will benefit also on the long-term scale.
  This company is very close to the Chinese government and there no doubt that it will play a special role all along the project:
   
• China Merchants Port Holdings Co Ltd (144 HK)
  China Merchant is acting on a strategical business one merchant ports. It appears worldwide as an expert in the development, construction, management and survey of merchant ports.
   
• COSCO SHIPPING Holdings Co Ltd (1919 HK)
  COSCO ist the leader in logistics and shipping business, especially through merchant ports but also mainly involved in the silk road project.