CSCEC Seeking Stable Returns In US Venture

CFW View: The announcement by China State Construction Engineering Corp (CSCEC) that it plans to acquire a US construction player forms part of the company's broader overseas expansion strategy. With growing indications that China's construction sector is entering a slowdown as economic cooling measures take effect, CSCEC is attempting to diversify its sales in bid to create a more balanced order book. However, the decision to focus on the depressed US market raises a number of questions given the industry's limited growth prospects over the medium-term.

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