According to the Securities Times app, construction machinery stocks continue to fall, as of the publication deadline, Zoomlion (01157) fell by 8.51%, to 4.84 Hong Kong dollars; Sany Int'l (00631) fell by 5.62%, to 5.4 Hong Kong dollars; Sinotruk (03808) fell by 5.07%, to 22.45 Hong Kong dollars; Morimatsu Intl (02155) fell by 4.39%, to 5.23 Hong Kong dollars.

On the news front, it is expected that various types of excavators will sell around 0.0143 million units in August 2024, a 9% year-on-year increase, including 0.0066 million units in China, a 17% year-on-year increase; and 0.0077 million units for export, a 4% year-on-year increase. From January to August 2024, excavator sales have decreased by around 2.5% year-on-year; the domestic market has seen a 7% year-on-year growth, while the export market has decreased by 11% year-on-year.

Zhong Yin International pointed out that the recent market has seen a boost in industry valuation due to the government's strong policy shift, which to some extent reflects the domestic expectations for the recovery of construction machinery and heavy truck sectors at their current levels. However, the transmission of policies to downstream demand will take at least several months. Therefore, it is expected that the stock prices in the coming months will be more volatile until substantial data improvements are observed. In terms of exports, the growth of construction machinery exports remains largely positive, while heavy truck exports are expected to weaken due to factors such as Russia adjusting import scrap taxes and a high base effect in major export markets.