, Columnist
Don’t Be Fooled by China’s Old Debt Playbook
Cranking up infrastructure projects has lifted shares of construction and engineering companies. But the benefits are likely to be limited to big, state-run firms.
They dig it.
Photographer: Nelson Ching/Bloomberg
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Build it and they will come. Or will they?
A flurry of construction may be about to take off in China, and investors have pinned their hopes on it. Stocks of Japanese machinery makers Komatsu Ltd. and Hitachi Construction Machinery Co. perked up on Monday. Over the past week, Chinese engineering and construction companies’ shares have surfaced from multi-month lows.