Market Surge in Construction Materials Sector

On August 11, 2025, the construction materials sector experienced a significant surge, with the index opening sharply higher by 0.93%. Although it briefly receded, the index continued its upward trajectory, peaking at a 1.82% increase before closing at 1.65%, reaching 1286.80 points. Out of 75 construction material stocks, 63 ended the day on a positive note. Notably, companies like West Construction, National Unity, and Xinjiang Qingsong Building Materials and Chemicals Group Co Ltd. hit their daily price limits, while Tian Shan Stock, Zhongqi New Materials, Silver Dragon Stock, and Ji Ding New Materials saw gains exceeding 5%.

Institutional Optimism in the Construction Materials Industry

Institutional investors have shown increased risk appetite for the construction materials sector. According to Dongwu Securities, in their analysis titled “Continuous Strengthening of Infrastructure Investment,” they have given a “buy” rating. The rationale behind this optimism is the ongoing discussions among enterprises in regions like the Yangtze River Delta, Hubei, Hunan, and Chongqing and Sichuan about implementing staggered production plans. If industry self-regulation measures are effectively implemented, cement prices are expected to enter a phase of recovery-driven increases. The contraction in supply is anticipated to accelerate, potentially improving the industry’s short-term supply-demand balance. With the gradual absorption of social inventory and the release of speculative demand from futures and spot markets, a short-term stabilization and rebound in prices are expected.

Xinjiang Qingsong Building Materials and Chemicals Group Co Ltd. in Focus

Xinjiang Qingsong Building Materials and Chemicals Group Co Ltd., listed on the Shanghai Stock Exchange, is among the standout performers in the sector. The company, which specializes in producing various types of cement and fertilizers, has been a focal point for investors. Its stock has been part of the 63 construction material stocks that saw gains, with its price reaching the daily limit. This performance aligns with the broader market trend and institutional optimism surrounding the construction materials sector.

Investor Activity and Stock Performance

On the same day, 38 stocks saw their 5-day trading volume exceed five times the average, indicating heightened investor interest. Among these, Xinjiang Qingsong Building Materials and Chemicals Group Co Ltd. was notable, with its 5-day trading volume ratio surpassing 8 times. This surge in trading volume reflects the strong investor confidence in the company’s prospects.

Furthermore, 99 stocks across the Shanghai and Shenzhen markets have been consistently net bought by institutional investors for five or more consecutive days. Xinjiang Qingsong Building Materials and Chemicals Group Co Ltd. is among these stocks, highlighting its attractiveness to institutional investors. The company, along with others like Old Phoenix and Bajaj, has enjoyed 13 consecutive days of net buying, underscoring the sustained interest from major market players.

Conclusion

The construction materials sector, buoyed by institutional optimism and strong investor activity, has shown remarkable resilience and growth potential. Xinjiang Qingsong Building Materials and Chemicals Group Co Ltd., with its robust performance and strategic positioning in the cement and fertilizer markets, stands out as a key beneficiary of these trends. As the sector continues to navigate supply-demand dynamics and regulatory landscapes, companies like Xinjiang Qingsong are well-positioned to capitalize on the opportunities ahead.