HK Stock Market Move | Construction machinery stocks continue to rise. The engineering machinery market accelerated its recovery in August. Overseas interest rate cuts may boost demand for construction machinery.

Construction machinery stocks continue to rise. As of the time of publication, MORIMATSU INTL (02155) rose by 6.98% to HK$4.6; SANY INT'L (00631) rose by 4.51% to HK$4.4; ZOOMLION (01157) rose by 2.58% to HK$3.97; Weichai Power (02338) rose by 1.29% to HK$11.5. On the news front, according to the China Construction Machinery Industry Association's statistics on major excavator manufacturing companies, a total of 14,647 excavators were sold in August 2024, an increase of 11.8% year-on-year, with 6,694 sold domestically, an increase of 18.1% year-on-year, and 7,953 exported, an increase of 6.95% year-on-year. In addition, Komatsu's official website recently released data on the operating hours of Komatsu excavators in August, with operating hours in China at 93.0 hours, a year-on-year increase of 3.3%. Shanghai Securities pointed out that domestic sales of excavators have achieved continuous year-on-year growth for five consecutive months since April 2024, and export data has shown positive growth for the first time in 2024. The bank noted that in recent years, downstream demand for construction machinery in the domestic market has been shrinking and continuously bottoming out. Exports have become an important growth point supporting the development of construction machinery enterprises. With the implementation of the Fed's interest rate cut policy, the expected lower interest rates are likely to stimulate a recovery in US real estate demand, which will in turn increase demand for new construction projects and drive corresponding demand for construction machinery. Export growth is expected to further rise, benefiting export-oriented construction machinery companies.