SWS 2011年中国经济政策前瞻及投资策略研究.pdfVIP

I n d u s t r y Building Materials I December 23, 2010 Gains from policy overshoots n d u s t —— 2011 Cement Sector Investment Strategy r y R e s e a r c h Overweight Investment Highlights: Unchanged  Investment opportunities can arise from policy overshoots. China relies heavily on government measures when tackling economic problems. This creates policy “overshoots” which provide investment opportunities. For example, in 2003-2005, the Related Research: power equipment sector index expanded 15-fold as a result of policy relaxation after strict capacity controls on IPPs in 1999-2002. “Optimistic outlook for 2011, takeaways from London road th  Cement sector is currently under strict capacity control. We expect a stock show” 14 Dec, 2010 re-rating in 2011. Policy controls will drive a significant improvement in the cement “Optimistic in the long-term, supply/demand dynamic in 2011. We expect that increasing demand will outpace net