Positioned well in the engineering and construction (E&C) markets of Hong Kong and Macau. Rising exposure to Chinese local governments for infrastructure-construction projects. Relatively small scale. Above average, but also more volatile, profitability. Good operating cash flow generation in Hong Kong and Macau market. Growth in China through investment projects requiring material working capital or equity investments. Investment buybacks in China starting to emerge, as projects are handed back under the build-transfer model. The stable outlook reflects our expectation that China State Construction International Holding Ltd. (CSCI) will maintain its good market position in Hong Kong and Macau, allowing it to generate stable cash flows as buffers against cash flow swings in its more volatile China operations over the next
