Changes in Hong Kong stocks | Construction machinery stocks collectively fall, leading companies raise prices to release an anti-domestic market signal, agencies say exchange pressure is expected to ease marginally

The Zhitong Finance App learned that construction machinery stocks were collectively lower. As of press release, Sinotruk (03808) fell 4.57% to HK$38; Sany International (00631) fell 3.1% to HK$6.56; Sany Heavy Industries (06031) fell 2.94% to HK$18.46; and Zoomlion Heavy Industries (01157) fell 2.29% to HK$6.82.

According to the news, starting July 1, the prices of various types of products such as wheeled and crawler cranes under Sany Heavy Industries and XCMG Machinery will increase by 2% to 5%. Yuan Zhen, secretary general of the Changsha Construction Machinery Industry Association, said that under the trend of leading companies taking the lead in price increases, the “internal aspects” of the price war between construction machinery companies may be temporarily mitigated, but it is essentially difficult to ease it.

Zhongtai Securities said that irrational price competition has been mitigated, which is conducive to restoring the profitability of the entire industry chain. Industry profits in the first quarter were generally affected by exchange losses caused by RMB appreciation, and the nominal profit growth rate was much lower than the actual operating profit growth rate. Southwest Securities, on the other hand, pointed out that the competitive pattern of the industry is shifting from within prices to profit restoration; the combined 26Q3 exchange pressure is expected to decrease marginally, and the performance flexibility of leading companies is expected to be released.