What does the infrastructure in the stock mean? Understand what infrastructure stocks are.

1. What does stock infrastructure mean?

Infrastructure refers to the new construction, reconstruction, expansion and repair of roads, railways, bridges and various industrial and civil buildings, as well as the purchase and installation of machines, equipment, vehicles and ships and related work, which can be called infrastructure. Capital construction stocks refer to the stocks of capital construction listed companies.

Infrastructure is divided into new infrastructure and old infrastructure. The old infrastructure includes traditional building materials, buildings and real estate. The new infrastructure is relatively extensive, mainly including 5G base station construction, UHV, intercity high-speed rail and urban rail transit, electric vehicle charging piles, big data centers, artificial intelligence, cloud computing, and the Internet of Things.

Second, the reasons for the surge in infrastructure stocks

In several trading days, the "new infrastructure" concept stocks represented by 5G and cloud computing in the A-share market are hot. After February 26th, infrastructure-related sectors began to lead the Shanghai and Shenzhen stock markets. The reasons for the surge in infrastructure stocks may be related to the following factors:

1, as early as the end of 20 18, the positioning of "new infrastructure construction" such as 5G, artificial intelligence, industrial internet and Internet of Things has been clearly defined. The Ministry of Industry and Information Technology has repeatedly stated that it will speed up the commercialization of 5G networks and accelerate the construction of 5G base stations. The Ministry of Communications and other 1 1 ministries and commissions jointly issued the Strategy for Innovative Development of Smart Cars to promote the application of 5G network technology in the field of smart cars.

2. In 2020, technology stocks rose significantly, especially in the semiconductor sector, with an average increase of 53%, which also led to the withdrawal of some funds due to risk considerations.

What does the above content mean about the infrastructure in the stock market? I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.