While ambitious initiatives like the One Belt One Road plan will continue to support companies and while valuations appear reasonable, careful stock-picking is required.A high level of investment in infrastructure in China is set to continue into the medium term. Under the latest Five Year Plan (FYP), for 2016-20, the transportation sector is to see CNY15 trillion (USD2.2trn) of capital expenditure, much of which will go into roads and railways. Another major domestic project, the Xiongan New Area, also implies large ongoing infrastructure spending.Spending will be supported by a growing trend for public-private partnerships (PPPs). Since 2013, the government has been actively promoting PPPs, with improvements to legislation and a shift in focus from just tendering projects to ensuring

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