The official data released yesterday concerning China’s purchasing managers’ index for July signals expansion.
However, figures compiled by Markit Economics research, revealed earlier, signaled contraction. Which numbers would you believe?
Hong Kong stock investors seemed to pay heed to the former, and the Hang Seng Index rose 0.9 percent to 22,088.
The central government has affirmed its commitment to six infrastructure tasks. The first calls for expanding urban underground pipe networks. Second, more sewage, garbage disposal and recycling facilities will be built.
The third is for 80,000 kilometers of gas pipelines to supply urban households.
Strengthening subway, light rail and other large-capacity public transport systems is planned.
The other steps are boosting electricity distribution networks in cities and building more drainage systems.
Most of the tasks involve laying pipelines. That explains why shares of China Lesso Group Holdings (2128) soared 12 percent yesterday.
It currently trades at eight times historical earnings, making valuation reasonable. I think it is not too late to consider this stock while the price remains 28 percent below its 52-week high. Dr Check and/or The Standard bear no responsibility for any decision made based on this column.