HK Stock Market Move | Construction machinery stocks collectively declined. Exchange losses in the first half dragged down profits, while exchange rate pressure on the sector weakened significantly in the third quarter.

Construction machinery stocks collectively declined. As of press time, Sany Heavy Industry (06031) fell 6.83% to HK$18.0; Sinotruk Jinan Truck (03808) fell 5.58% to HK$38.58; SANY INT'L (00631) fell 3.42% to HK$9.045; ZOOMLION (01157) fell 2.05% to HK$5.72. On the news front, the RMB appreciated more than 3% against the US dollar in the first half of the year, hitting a three-year high. The interim results of the four major OEMs show that exchange losses included in financial expenses totaled approximately RMB 4.37 billion in the first half of 2026, compared with total exchange gains of approximately RMB 1.96 billion in the same period last year. Soochow pointed out that exchange rate pressure on the sector weakened significantly in the third quarter, and sector performance in the third quarter is expected to improve markedly both quarter-on-quarter and year-on-year. GF SEC also stated that in the first quarter of 2026, the apparent profit growth of construction machinery enterprises declined somewhat due to exchange rate effects, and in the second quarter of 2026, year-on-year data may come under pressure due to the high base from relatively high exchange gains in the second quarter of 2025. Looking ahead to the third quarter, once exchange rate risk is over, apparent net profit in the export chain is expected to align with operating profit and achieve highly elastic growth.