(Yicai) Nov. 10 -- China’s state-owned infrastructure giants such as China Communications Construction (CCCC) and China Railway Construction Corporation (CRCC) are stepping up overseas expansion to counter weaker domestic revenue, their latest financial reports show.

CCCC signed CNY284.1 billion (USD39.9 billion) worth of new overseas contracts in the first three quarters, up 7 percent from a year earlier and accounting for 21 percent of its total new contracts, the Beijing-based contractor said in its third-quarter report.

Despite geopolitical tensions and a volatile global environment, the global push for economic recovery through infrastructure development has strengthened, CCCC said in its interim report. Rising demand for cross-border connectivity has driven major projects toward leading firms such as CCCC, it added.

Construction began earlier this month on the east main tower foundation of the Fourth Bridge over the Panama Canal, built by a consortium including CCCC. The 965-meter bridge is the largest single bridge project by a Chinese firm in Latin America and the biggest economic and trade cooperation project between China and Panama.

Among China’s major builders, CRCC has recorded the fastest overseas growth this year. Its new overseas contracts jumped 95 percent to CNY204.8 billion in the first three quarters, accounting for 13 percent of its total new contracts.

CRCC has prioritized overseas development, securing major projects such as the China-Kyrgyzstan-Uzbekistan Railway, King Saud University in Saudi Arabia, the upgrading of the Tanzania-Zambia Railway, and the Santiago-Batuco Railway in Chile, Chairman Dai Hegeng said at an earnings briefing earlier this month.

China Railway Group, the nation’s largest railway infrastructure firm, also saw a 35 percent increase in new overseas contracts to CNY166.6 billion in the same period. Power Construction Corporation of China and China Energy Engineering Corporation reported overseas orders up 21 percent and 13 percent to CNY213.8 billion and CNY264.7 billion, respectively.

The gap between global infrastructure investment needs and existing input will reach USD15 trillion by 2030, with Asia accounting for more than 60 percent, generating major opportunities in energy, municipal, and transportation projects, Power Construction Corporation of China said in its interim report, citing forecasts by knowledge-sharing platform G20 Global Infrastructure Hub.

Overseas business accounts for less than 25 percent of total revenue at each of China’s state-owned infrastructure giants, leaving substantial room for growth. With domestic profit margins under pressure, expanding abroad has become an inevitable trend, China Galaxy Securities said in a research note.

Infrastructure in many countries participating in China’s Belt and Road Initiative still has significant potential for improvement, the brokerage added. Moreover, as global industrial transfers accelerate, Southeast Asia has become the main beneficiary, with rapid industrialization driving sustained infrastructure demand in the region.

Editors: Dou Shicong, Emmi Laine