Sichuan Road & Bridge Shares Fall 3% as £1B China Infrastructure Collapse

A newly constructed Chinese bridge has collapsed just months after opening, causing its contractor's shares, the Sichuan Road and Bridge Group stock, to tumble 3% in after-hours trading on Tuesday, 11 November 2025.

The 758-metre Hongqi Bridge, part of National Highway G317 linking central China to Tibet, partially collapsed on Tuesday afternoon following landslides in Maerkang City, Sichuan province. The incident has shaken investor confidence in China's construction sector and raised fresh concerns over oversight within the country's ambitious Belt and Road infrastructure programme.

Financial Fallout and Market Response

Sichuan Road & Bridge Group Co., Ltd (SHA: 600039) saw its shares decline by 3% after the news broke, according to market analysts. The state-owned contractor, which completed the bridge earlier this year, now faces increased scrutiny regarding the project's structural integrity and potential legal liabilities.

The company has been struggling financially, with net income falling 28% year-over-year to 1.77 billion yuan (£177 million) in the first quarter of 2025, and revenue dropping 35% to 22.99 billion yuan (£2.3 billion). Its debt-to-equity ratio stands at 139%—well above industry averages—heightening its vulnerability to reputational and financial shocks from incidents like the Hongqi collapse.

Despite securing 34.68 billion yuan (£3.47 billion) in infrastructure contracts for 2025, including projects under China's Belt and Road Initiative, the incident threatens to undermine confidence in its capacity to deliver safe, resilient infrastructure.

Safety Measures and Immediate Response

Local authorities in Maerkang detected signs of slope deformation on the bridge's right bank on the evening of 10 November, prompting immediate evacuation of stranded vehicles and traffic restrictions. By 11:00 pm, all vehicles had been cleared, and warning signs were positioned at the site.

However, worsening geological conditions led to landslides on Tuesday afternoon, causing the approach road and supporting structures to collapse. Dramatic footage circulating on social media shows large sections of the bridge plunging into the river valley below, with dust clouds billowing into the air.

Fortunately, no casualties occurred as authorities had preemptively closed the bridge amid reports of instability.

Construction Standards and Long-term Concerns

The collapse has reignited debate over China's infrastructure development model, especially the emphasis on speed over safety in geologically complex regions. Sichuan's seismic activity is heightened due to its location where the Tibetan Plateau meets the Sichuan Basin.

A 2024 peer-reviewed study published in MDPI highlighted recurring vulnerabilities in Chinese bridge projects, including hurried construction timelines, inadequate slope analysis, and insufficient geotechnical surveys—particularly in mountainous areas like Sichuan. Experts warn that long-term resilience is often sacrificed for rapid delivery.

An infrastructure analyst commented, 'This isn't just a local tragedy; it's a red flag for risk in high-stakes builds,' raising concerns over potential insurance claims and lawsuits that could further strain the company's financial stability.

Economic and Repair Impacts

Repair costs are expected to reach hundreds of millions of yuan, adding pressure to budgets already strained by post-pandemic recovery efforts. The Hongqi Bridge is a crucial economic artery connecting China's interior to Tibet, and its closure has led to detours, adding hours to journeys between Chengdu and Lhasa.

This incident follows another recent infrastructure failure — a railway bridge under construction in Qinghai collapsed in August during a cable tensioning operation, resulting in 12 worker fatalities and four missing workers.

Broader Market Implications

The collapse has sent shockwaves through indices tracking Belt and Road projects, with credit rating agencies closely monitoring the incident's wider impact on China's construction sector. Investors are demanding more rigorous risk assessments, especially concerning geological and engineering vulnerabilities in high-risk regions.

Sichuan Road & Bridge Group has not yet announced a timeline for reopening the highway. Authorities have stated that a full investigation is underway to determine the precise causes of the failure, examining design, material quality, and construction oversight.