China’s US$2.2 trillion urban renewal plan to boost construction, property sectors
Plan for 2026 to 2030 includes upgrades to pipelines, drainage, dilapidated homes, and facilities for education and elderly care
China’s ambitious urban renewal projects, from upgrading dilapidated homes to rebuilding gas pipelines, are expected to require investment of at least 15 trillion yuan (US$2.2 trillion) in the five years from 2026, offering fresh growth opportunities for construction firms.
Property developers also received a shot in the arm on Friday, after the State Council released a guideline on the urban renewal campaign, part of Beijing’s 15th five-year plan for 2026 to 2030.
The overall investment could top 20 trillion yuan during the period, based on details of the rebuilding and renovation plans, according to the Economic Information Daily, a newspaper run by state news agency Xinhua.
“Mega reconstruction projects can improve people’s welfare and be an important driver for the national economy,” said Wang Feng, chairman of Shanghai-based financial services group Ye Lang Capital. “Indeed, the central and regional governments will keep up repair and renovation work even after 2030, to ensure safety and efficiency of the infrastructure.”
The five-year plan defines mainland China’s economic and social priorities, and both Chinese and international companies delve into various government documents related to the plan to sniff out opportunities.
A total of 200,000km of gas pipelines, 175,000km of drainage pipes and 175,000km of water-supply pipes across the mainland’s urban areas would be rebuilt by 2030, the State Council, China’s cabinet, said in the guideline.