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Suppressed credit tightening money supply tightening of construction machinery
Sep 28, 2016

Industry sales to raise anti-industry inflection point is a place where coming. The first half of 2011, construction machinery industry and present grave situation after first raised, since April, the obvious decline in industry sales. But from 1 May and the industry's overall sales situation, excavator sales this year rose 36%, bulldozers sold rose 21%, loaders sold rose 21%. We believe that this year's slowdown in construction machinery industry this is an indisputable fact, but if confirmed industry inflection point comes, it seems a bit rash.

Social housing accelerated, demand is expected to pick up. 2011 national commercial housing sales appeared to be a certain decline, as the leading indicator of the real estate industry, the slowdown of sales area of newly started buildings of the future will face greater downside risks, which will in the future to certain restricted sales of construction machinery industry. But housing starts is generally low, the State affordable housing and issued a death order, we expect the second half of the collective work will stimulate the construction of affordable housing-related sales of construction machinery.

Strong commodity prices, exports are expected to become a new engine of growth. Since the financial crisis, continued strength in commodity prices, from the current liquidity, demand and supply situation, commodity prices is likely to continue to run high among the current for a while, which is conducive to growth in exports of construction machinery industry in China in the future. We believe that export growth this year 30% a big problem.

Increasingly intense competition in the industry, accessories development will become an important competitive edge. We believe that with increasingly fierce industry competition, core components development and production will be in the future some of the leading companies in the industry one of the key core competencies. With fierce competition in the future, industry will likely face a round of reshuffle, after the shuffle, when, in the domestic construction machinery industry will appear alongside United States Caterpillar and Japan Komatsu Super carrier-grade construction machinery enterprises.

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