Construction Machinery Market Index (CMI) has returned to the expansion zone. The China Construction Machinery ETF by Huaxia (515970) has the lowest fee rate among similar funds, with constituent stock China National Heavy Duty Truck Co. (SINOTRUK) rising over 5%.

On April 3 in the morning, the three major A-share index benchmarks showed diverging trends. During the intraday session, the SSE Composite Index fell 0.41%. Sectors such as communications, electronics, and non-bank financials led the gains, while agriculture, forestry, animal husbandry, and fishery, as well as coal, saw declines.

At the start of trading, the Huaxia Engineering Machinery ETF (515970.SH) surged up and then pulled back, before stabilizing and turning higher. The performance remained steady, highlighting the sector’s resilience. As of 10:39, it was down 0.11% slightly. Among its constituent stocks, Sinomach Heavy Duty Jinan Co., Ltd. rose 5.66%, Aoxiang Technology rose 4.02%, Guangli Technology rose 2.32%, Hengli Hydraulic rose 1.26%, and Yutong Heavy Industries rose 1.26%.

In March, China’s CMI (Engineering Machinery Market Index) recorded 132.96, up 3.42% year over year and up 26.12% month over month. After 11 months, the index returned to the expansion range, indicating that China’s domestic engineering machinery market is gradually entering the peak season (based on the CMI criteria).

Jianghai Securities said that in 2026, the first year of the “15th Five-Year Plan,” the country will continue to implement a proactive fiscal policy and a moderately accommodative monetary policy. It will strengthen coordination between existing and incremental policies, increase efforts in counter-cyclical and cross-cyclical adjustments, and improve the effectiveness of macro governance. At the same time, it will adhere to domestic demand as the main driver, innovation-led development, and deeper reform, continuously laying a solid foundation for high-quality development. With policy dividends continuing to be released and expectations for equipment upgrades and iterations strengthening, along with the sustained progress in construction of emerging industries and major infrastructure projects, domestic demand for engineering machinery is expected to keep recovering. As for overseas markets: benefiting from the policy dividends of China’s “Belt and Road” initiative, sustained strong demand from developing countries, and a gradual rebound in developed countries’ markets, combined with the continuous improvement of international recognition of China’s own brands, related domestic companies’ export business is expected to maintain rapid growth, becoming the core driver supporting their long-term steady development.

The Huaxia Engineering Machinery ETF (515970) closely tracks the CSI Engineering Machinery Theme Index. It enables one-click allocation to leading companies in the industry chain, and fully benefits from the upward movement in the engineering machinery industry’s business cycle. Currently, the fund’s management fee is 0.15% per year and its custody fee is 0.05% per year, placing it at the lowest tier among similar products in the industry.

The Daily Economic News

(Editor: Dong Pingping)

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