One week industry view
In order to further promote the market-oriented rule of law "debt to equity swap" and increase support for small and micro enterprises, the people's Bank of China decided to downgrade state-owned large commercial banks, joint-stock commercial banks, postal savings banks, urban commercial banks, non County Agricultural commercial banks and foreign bank RMB since July 5, 2018. The deposit reserve ratio is 0.5 percentage points. According to the public information of the central bank, 700 billion yuan of funds can be released by this orientation, of which 500 billion yuan is used to support the market oriented "debt to equity swap" project, and 200 billion yuan is used to support related banks to open up small and micro enterprises market and to grant small and micro enterprise loans. The macroeconomic data of May is not optimistic, in which the integration and infrastructure are in decline. This orientation is the support of the macro economy, the marginal improvement of the policy and the further policy support in the future. In the mid newspaper season, the main companies in the construction machinery industry chain are expected to achieve high profit growth. In terms of sales, we maintain the 2018 excavator sales volume of around 180 thousand forecasts, up 30%, is expected to create a new high, in June, sales data is still expected to be good. The marginal improvement of the macroeconomic policy is expected to promote the valuation of the construction machinery plate, and it is suggested that the key enterprises of the mainframe of the construction machinery and the enterprises of hydraulic parts should be paid more attention to.
