Broker Reiterates Bullish China Construction Machinery; Export Tax Rebate Unchanged

Very Bullish · $600031.SS · $000425.SZ · $000157.SZ · $601100.SS · $000680.SZ

What Happened

China's Ministry of Finance and State Taxation Administration announced an adjustment to export tax rebate policies on October 12, but construction machinery was not included in the adjustment list, removing a market overhang. The broker also noted that foreign exchange effects are diminishing and third-quarter earnings are expected to accelerate.

Bottom Line

The broker remains bullish on China's construction machinery sector, citing policy clarity, improving earnings momentum, and undervalued fundamentals.

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