HK Stock Market Move | Engineering machinery stocks collectively fell during the Chinese Spring Festival holiday, with domestic sales of excavators under pressure due to disruptions. In February, domestic sales of excavators decreased by 42% year-on-year.

The collective decline of construction machinery stocks, as of the time of publication, LONKING (03339) fell by 7.55%, to 2.94 Hong Kong dollars; SANY INT'L (00631) fell by 5.2%, to 13.86 Hong Kong dollars; ZOOMLION (01157) fell by 4.77%, to 9.39 Hong Kong dollars. In terms of news, the Construction Machinery Industry Association released excavator data for February, with a total of 17,226 excavators sold in February 2026, a year-on-year decrease of 10.6%. Of these, 6,755 were sold domestically, a year-on-year decrease of 42%, and 10,471 were sold for export, a year-on-year increase of 37.2%. Shenwan Hongyuan Group believes that the decline in domestic demand sales in February was due to the shift of the Spring Festival holiday and not a sign of weakening demand (the Spring Festival in 2026 was on February 17, while in 2025 it was on January 29). After excluding the influence of working days, the industry's real demand resilience is evident. Soochow also stated that the domestic situation in January to February met expectations, with exports exceeding market expectations. The recovery in Europe and America, as well as the strong performance of Africa and Indonesia, are still strong, and they are optimistic that the export cycle for 2026 has officially started to trend upwards. Export markets account for over 80% of the current sector's profit, and with the start of an upward export cycle, they predict that the sector's performance and valuation for 2026 will see a double increase.