BMI View: Hong Kong's construction sector growth is likely to be subdued over the long term as theChinese economy is in the midst of a protracted slowdown, while the territory's difficult businessenvironment and labour shortage will weigh on growth, despite a substantial pipeline of projects.
Latest Updates And Structural Trends
- Over the long term, Hong Kong's infrastructure sector growth will be subdued, and it will be underminedby a structural slowdown in China, a deteriorating business environment, and a lack of labour.
- The Hong Kong government will continue to invest significantly in transport infrastructure, but thesector's growth will be hampered by continued delays and cost overruns, and we forecast the sector togrow by an average of 3.0% over 2016 and 2020.
- Although our long-term outlook for Hong Kong's residential and non-residential is subdued, we believethat public housing in Hong Kong will remain a bright spot as the government aims to improve housingaffordability in the territory. According to the 2016/17 budget, the government is targeting a publichousing supply of 280,000 units for the 10-year period starting from 2016/17.
Table Of Contents
Hong Kong Infrastructure Report Q3 2016 BMI Industry View 7 Latest Updates And Structural Trends 7 Table: Hong Kong Construction Industry Forecast 7 Table: Hong Kong Infrastructure Risk/Reward Index 8 SWOT 9 Industry Forecast 11 Construction And Infrastructure Forecast Scenario 11 Latest Updates 11 Table: Construction And Infrastructure Industry Data (Hong Kong 2015-2025) 11 Structural Trends 12 Structural Trends 13 Table: World Bank Doing Business Report 16 Transport Infrastructure - Outlook And Overview 19 Latest Updates 19 Table: Transport Infrastructure Industry Data (Hong Kong 2015-2025) 19 Structural Trends 20 Table: Competitiveness Of Hong Kong's Infrastructure 20 Table: Transport Projects 31 Energy And Utilities Infrastructure - Outlook And Overview 33 Latest Updates 33 Table: Energy And Utilities Infrastructure Data (Hong Kong 2015-2025) 33 Structural Trends 33 Table: Castle Peak Power's Power-Generation Assets 34 Table: Energy and Utilities Projects 36 Residential/Non-Residential Construction - Outlook And Overview 37 Latest Updates 37 Table: Residential And Non-Residential Building Industry Data (Hong Kong 2015-2025) 37 Structural Trends 37 Residential Building 38 Non-Residential Building 41 Social Infrastructure 42 Table: Construction And Social Infrastructure Projects 43 Industry Risk Reward Ratings 44 Hong Kong - Risk/Reward Index 44 Rewards 44 Risks 45 APAC Infrastructure RRI: Affirming A Benign 2016 Outlook 46 Table: Asia Risk/Reward Index 52 Market Overview 53 Competitive Landscape 53 Company Profile 54 Cheung Kong Infrastructure 54 CLP Holdings 59 Methodology 64 Industry Forecast Methodology 64 Sector-Specific Methodology 65 Risk/Reward Index Methodology 69 Sector-Specific Methodology 70 Table: Infrastructure Risk/Reward Index Indicators 70 Table: Weighting Of Indicators 71