China cements its place in construction history

China has overcapacity problems in many industries, including cement. The country has undergone an infrastructure binge since its post-financial crisis stimulus package in 2008, where capital investment occurred without due concern for the returns it would or would not generate. This explains the elevated cement consumption per capita in China compared to the peak levels seen elsewhere, as building for future demand was brought forward. As a result, from both the supply side and the demand side, we do not currently find this sector a compelling investment proposition in China and have no exposure to it.

Caroline Keen, Newton

  • Download
  • Print
Comments are closed.