The central government might defer the annual Central Economic Working Conference (CEWC) from late November to early or even mid-December to come up with more concrete policy measures to boost domestic consumption, a JPMorgan report predicted.

The report added that the measures are expected to boost the property and infrastructure sectors.

Boosted by the soon-to-be-launched measures, together with the rate cut by the central bank, mainland property and infrastructure stocks saw a significant rally yesterday.

"We believe there is a rising consensus in the central government that the mainland has to more urgently stimulate domestic consumption, and some special and urgent policy moves are needed to achieve the goal," said Frank Gong, a JPMorgan economist.

On the property market, the report believed that the new policy will attempt to stabilize property prices, while more measures could be made to boost the A-share market and property transaction volume.

To prevent the further weakening of domestic demand and avert over-supply, the government may use the money to purchase unsold apartments rather than to build new homes.

As for infrastructure investment, the report predicted that the central government will give green light to the much-needed projects, as the total projected costs of such constructions planned by local governments have reached about 20 trillion yuan.

In anticipation of the massive investment, three Hong Kong-listed mainland infrastructure stocks saw a notable rise yesterday.

China Communications Construction rose 5.67 percent to HK$7.45. China Railway Construction Corporation (CRCC) gained 2.03 percent to HK$11.02, while China Railway Group (CRG) closed at HK$4.94, up 5.78 percent.

"I believe the stimulus package will significantly benefit the infrastructure sector. Given the package will focus on improving railway system, it will boost the share performances of CRCC and CRG," said Ricky Tam, chairman of Hong Kong Institute of Investors.

Besides, mainland property stocks soared yesterday following the People's Bank of China's announcement of rate cuts.

Shares of China Overseas Land yesterday advanced 3.05 percent to HK$9.1, while R&F Properties surged 10.47 percent to close at HK$3.69. Some analysts, however, suggested caution.

"I think the outlook for mainland property stocks remains uncertain in view of the oversupply in the market," said Patrick Shum, chief portfolio strategist of Karl Thomson Securities.

(HK Edition 11/27/2008 page2)