HK Stock Price Fluctuated | FIRST TRACTOR (00038) rose more than 4%, with a 5 trillion yuan equipment update starting, a new round of subsidies expected to stimulate demand for agricultural machinery replacement.

FIRST TRACTOR (00038) rose more than 4%, as of the time of drafting, it has increased by 4.24%, closing at 7.38 Hong Kong dollars, with a turnover of 18.85 million Hong Kong dollars. On the news front, the State Council recently issued the "Action Plan for Promoting Large-scale Equipment Updates and Trade-ins for Consumer Goods". The plan mentions that by 2027, the investment scale in equipment in industries such as industry, agriculture, construction, transportation, education, culture, tourism, and healthcare is expected to increase by more than 25% compared to 2023. The plan also aims to promote the renewal and transformation of equipment in key industries, accelerate the renewal of equipment in the construction and municipal infrastructure sectors, and support the renewal of transportation equipment and old agricultural machinery. Soochow has pointed out that agriculture ranks second in the focus of the 5 trillion equipment update action in the 7 key areas. Looking ahead to 2024, unfavorable factors caused by the transition from National III to National IV standards are expected to fade away, and under the stimulation of new subsidies, demand for updates and replacements is expected to be spurred, leading to an increase in industry demand. Furthermore, with the increasing technology requirements in the industry due to the transition from National III to National IV, market share is accelerating towards the top players, and it is recommended to pay attention to First Tractor and other companies in the industry.