In these next pages, you will read about current events in the life and development of major service providers in the Chinese construction industry.

The first part of the report covers the market size and value of the construction industry as well as the overview of the construction machinery and equipment in China.

Part two of the report presents the trends and outlook of the industry which include the constructions of roads, highways, roads in rural areas, social housing and railway.

Five construction companies are discussed in the third part of the report. SWOT analysis, operational highlights, latest financial results and quick facts of each leading company are also included in this section.

Key Points:

• China is stepping up efforts of its social housing program to build 36 million affordable and subsidized apartments between 2011 and 2015. Projects comprising seven million subsidized apartments are expected to begin construction while five million units will be completed by the end of 2012.

• Investments in road construction under the 12th Five-Year Plan is expected to reach RMB5 trillion, 22.7% higher than investments made in the 11th Five-Year Plan. Planned investments for constructions of highways and roads in rural areas are RMB3 trillion and RMB1.4 trillion, respectively.

• In 2011, demand for construction machinery and equipment dropped in China as the government took steps to contain inflation and to tighten economic policies in 2011. Market of construction machinery and equipment remain soft this year as a result of reduced infrastructure investment and residential construction.

• Total length of railway was 95,234 kilometers by the end of 2011. China is expected to spend more than RMB 2 trillion on railway infrastructure construction during the 12th Five-Year Plan period.