CICC English Daily-081105-CICC Macroeconomy Weekly/ CRCC (1186.HK)

Pls see attached the full PDF research report, below is a highlight:
 
Strategy & Macro
CICC Macroeconomy Weekly                                       Page 2
October: Deteriorating Growth, a Hard Nut to Crack
October economic data preview: sharp slowdown in PPI inflation, sluggish industrial production, export slowdown and further increases in trade surplus. In our view, China should take swift counter-cycical policy responses as the economy faces much tougher challenges now than in 1998. We expect an additional 216bp in interest rate cuts by the end of 2009, with each cut greater than 27bp. We believe the government will likely adopt an expansionary fiscal policy stance at the central economic working conference in December, including tax cuts and bond issues to finance government investment.
Listco Updates
CRCC (1186.HK): HOLD                                             Page 20
CRCC Announced Temporary Suspension of Its
Nigeria Project
CRCC recently received a letter from the Ministry of Transportation of Nigeria, requesting a temporary suspension of its Nigeria project pending redefinition of the scope of the contract, which should take about 90 days. Investors should be alert to impact of international exposure of construction companies to global economic deterioration. Historically, CRCC’s overseas revenue has not been high, despite large contract values. Changes to the Nigerian project are within our expectation and have no substantial impact on our 2009/2010 earnings forecast.