HK Stock Market Move | Power equipment stocks fell broadly today. SpaceX has started to produce its own rocket engine blades and plans to shorten the deployment cycle of its units.

Shares of power equipment posted a widespread decline today. As of the time of writing, Weichai Power (02338) fell by 4.30%, trading at HKD 30.24; Dongfang Electric Corporation (01072) dropped by 3.67%, at HKD 19.67; CHONGQING M&E (02722) declined by 1.63%, at HKD 1.81; and Shanghai Electric Group (02727) decreased by 1.53%, at HKD 2.895. On the news front, SpaceX is building a manufacturing facility in Bastrop, Texas, for producing large gas turbine blades and vanes. Musk stated that these components are a major limiting factor for the current expansion of gas turbine deployment. By manufacturing in-house at SpaceX, the timeline for gas turbines could be advanced by up to 18 months, helping to alleviate the power supply bottlenecks faced by expanding AI data centers. A report from Sinolink indicates that gas turbines are expected to become the preferred power supply solution for AI data centers in the long term, thanks to their comprehensive advantages of stable power generation, suitability for peak load power generation, large capacity, and low costs. Since 2024, major overseas gas turbine manufacturers such as GEV and Siemens Energy have seen continuous high growth in orders, with visible order backlogs extending over five years, reflecting a robust industry outlook.