China Industrials "Industrial insights (June) – industrial activity rema..."

研报英文原文证据摘录

China Industrials "Industrial insights (June) – industrial activity rema..."

Global Research

26 June 2026ab

China Industrials Equities

ChinaIndustrial insights (June) – industrial activity

remains solid, but with mild signs of softening Industrial

Phyllis Wang

Analyst

phyllis.wang@ubs.com

Healthy activity continues but manufacturing FAI weakness is raising concerns +86-21-3866 8964

We present key industrial data in our monthly China Industrials Chartbook. Industrial Grace Wang

activity remains resilient but early signs of softening are emerging. Growth in domestic Analyst

excavator demand and heavy trucks (including exports) has slowed, and automation S1460525030001

orders are likely to moderate. Also, leading Chinese domestic machine tool companies grace-zb.wang@ubs.com

have flagged slightly weaker downstream customer confidence. In addition, +86-21-3866 8857

infrastructure and property construction activity remains weak, based on our ground Robin Xu

checks. NBS reported 5M26 manufacturing FAI fell 0.4% vs. +1.2% in M426 and Analyst

+4.1% in Q126, raising investor concerns about capex-related sectors. We recommend S1460511010012

investors focus more on stocks with earnings and fundamental support, as well as bin.xu@ubs.com

attractive valuations, such as CSSC, Hongfa, Sany Heavy, JDI, CTI and CRRC-H. We also +86-21-3866 8872

suggest to buy Inovance and XCMG. Wei Shen

S1460518060001

Solid demand for excavators; stable for HDTs and shipbuilding wei.shen@ubs.com

Infrastructure FAI (excluding utilities) is experiencing a continuous accelerated decline, +86-21-3866 8897

from -3% YoY in April to -10% YoY in May. Based on our recent dealer checks, most Kunlun Li

dealers expect June excavator sales to grow 15-20% YoY, mainly driven by export Analyst