In an attempt to revive economic growth, which has reached its slowest in three years, China is continuing to approve major construction projects.

The most recent plan involves the development of 1,254 miles (2,018 kilometres) of roads, including highways in the Zhejiang and Xinjiang provinces.

According to China's National Development & Reform Commission the projects were approved between June and August this year, alongside plans for nine sewage-treatment plants, two waterway upgrades and five port and warehouse projects.

Major Chinese Construction Projects

"Beijing policy makers are stepping up efforts to speed infrastructure investment to hold up growth," reported Qu Hongbin and Sun Junwei, economists at HSBC. "We expect a fast filtering-through process to generate a modest growth recovery in the coming months."

The announcements saw Chinese stock rise the most in three years, which came the day after backing came for subway development in eighteen cities, and the rail construction budget was increased.

In the highest movement since 2009, the Shanghai Composite Index rose by as much as 4.2%, and China's largest cement company Anhui Conch Cement Co. rose by as much as 9.3%; the highest since July 2010. Things were also looking up for Gansu Qilianshan Cement Group Co., which rose by the daily limit of 10%.

Sany Heavy Industry Co and Zoomlion Heavy Industry Science & Technology Co. each rose by up to 10% in Shanghai and Shenzhen respectively, while Hong Kong saw the highest rise of Lonking Holdings Ltd. in nearly four years with 16%.

"We believe this new approach of policy stimulus is in the right direction," said economist Lu Ting. "Adding home supply and improving urban infrastructure are the two best ways to contain home prices, speed up urbanization and increase social welfare."

Construction Boosts Growth

According to HSBC, the twenty-five new subway and intercity rail projects are worth over 800billion yuan, with spending running to 2018. Development may be accelerated by NDRC backing, with most of the projects already in the government's plans.

Rail stocks continued to rise after approval for the subway projects was announced, with Citigroup Inc. analysts seeing a positive outlook for the railway-construction and equipment sector.

There has also been 16.8billion yuan approved for metro-line expansion projects, 4.4billion yuan of which will go on the extension to the plan Disney theme park.

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