China Infrastructure Construction Corp (CHNC) WACC Analysis

As of June 22, 2025, China Infrastructure Construction Corp (CHNC) carries a Weighted Average Cost of Capital (WACC) of 7.4%. WACC reflects the blended rate China Infrastructure Construction Corp must pay to both equity and debt holders.

Within that, the cost of equity is 11.0%, the cost of debt is 4.9%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 4.2% – 4.7%
• Equity market risk premium: 5.0% – 6.0%
• Adjusted beta: 1.36 – 1.89
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.7

What It Means for Investors

With a selected WACC of 7.4%, China Infrastructure Construction Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.