On January 22, 2026, the overall performance of the A-share market was tepid. The Shanghai Stock Exchange Index rose only slightly by 0.14%. However, the GEM Index rose by more than 1%, and the market showed obvious movement.
Among them, the construction and building materials sector has become the most dazzling star. Large market capitalization stocks such as Dongfang Yuhong and Keshun Shares have experienced significant gains, and funds have obviously moved closer to this sector.
This rise in building materials stocks is not accidental.
Recently, policies have been intensively introduced, and the Ministry of Commerce and the Ministry of Housing and Urban-Rural Development have successively made efforts to promote green building materials into households.
Encourage the use of green materials in home decoration, develop prefabricated decoration, and combine it with the “old for new” policy. Not only can household appliances be replaced with new ones, but house decoration can also receive certain subsidies.
The Ministry of Housing and Urban-Rural Development issued a document clearly proposing to improve the quality of housing and promote functional materials such as waterproofing, sound insulation, and antibacterial materials. Social housing will take the lead in using them, and commercial housing also needs to increase the proportion of use.
This makes green building materials no longer just a concept, but truly a large-scale application.
In the past, the building materials industry relied mainly on price competition.
Nowadays, traditional products such as cement and glass are restricted by production capacity expansion. The industry has begun to “anti-involution” and companies no longer engage in price wars.
Leading companies have gained greater development space by relying on their brands, channels and new product development.
More importantly, as the number of existing houses increases, the renovation and secondary decoration of old communities has become a huge market.
When decorating, consumers no longer just pursue low prices, but pay more attention to environmental protection and health.
Waterproof materials, energy-saving doors and windows, low-formaldehyde panels, etc. have gradually become standard features in home decoration. Consumers are willing to spend more money for peace of mind, and companies are motivated to research and develop.
The entire building materials industry chain is also constantly upgrading.
Some companies have launched “green points” activities, where old decoration materials can be recycled in exchange for discounts.
Banks have also launched green home improvement loans, with lower thresholds than ordinary installment loans, allowing more people to replace environmentally friendly materials.
The development of science and technology has also made building materials more “smart”.
For example, intelligent systems are combined with thermal insulation walls, and wall panels can both maintain warmth and control temperature through the Internet; self-healing concrete can automatically repair cracks and has a longer service life, making it very suitable for the renovation of old communities; photovoltaic building materials combine solar panels with building materials and are increasingly common in new construction projects in first-tier cities.
From a financial perspective, the fund’s fourth quarter report shows that many equity funds have increased their positions in technology and green sectors.
While some “doubling funds” are investing heavily in AI, they have also laid out hard technology targets in the field of building materials.
This shows that institutions are reallocating positions, not only chasing hot spots, but also focusing on long-term logic.
The rise in the building materials sector is the result of the three forces of policy, demand and technology.
It is not a short-term hype, but a switch in the market structure.
Traditional materials stabilize profits through self-discipline, while new materials open up markets through innovation.
Green consumption has transformed from slogans to practical actions, from policy promotion to residents’ choice to financial support, forming a complete closed loop.
Whoever can organically combine products, channels and services will be able to reap dividends in this wave of development.
The market does not lack funds, but it lacks clear direction.
The traditional industry of building materials has regained its vitality because of the concepts of “green” and “upgrading”.
