The 10 trillion yuan steady growth target has been implemented! The Machine Tool ETF (159663) rose against the trend by 1.03%, and the industrial mother machine main line is once again catalyzed.

On the afternoon of March 2nd, the three major A-share indices showed divergent trends. The Shanghai Composite Index rose by 0.42% during the trading session, with sectors such as petroleum and petrochemicals, coal, and non-ferrous metals leading gains, while media and computing sectors declined the most. The machine tool sector showed mixed performance. As of 2:23 PM, the Machine Tool ETF (159663.SZ) increased by 1.03%, with its constituent stocks Tai Jia Co., Ltd. and He Dun Intelligent hitting the daily limit. Hengfeng Tools rose by 8.76%, and Yu Huan CNC increased by 7.82%. However, Yu Jing Co., Ltd. and Shandong Weida performed poorly, with declines of -10.00% and -5.67%, respectively.

The Ministry of Industry and Information Technology and five other departments jointly issued the “Mechanical Industry Stabilization Growth Work Plan (2025–2026),” which clearly states that the average annual revenue growth rate for the mechanical industry from 2025 to 2026 will be around 3.5%, with the core goal of surpassing 10 trillion yuan in revenue by 2026. The plan emphasizes coordinated efforts on both supply and demand sides, aiming to activate the existing machine tool market through large-scale equipment upgrades. By 2025, China’s machine tool inventory will exceed 8 million units, with old machines in service for over 10 years accounting for 40%, representing a market space of over one trillion yuan for replacement and upgrade. The plan also promotes the “Industrial Mother Machine+” initiative to connect production and demand for domestically produced machine tools, addressing application bottlenecks. During the exhibition, a single event in Shanghai released 100 demand lists and 200 supply lists, covering key fields such as aerospace and new energy vehicles. Leading companies during the event expressed near 500 million yuan in potential orders.

CITIC Securities pointed out that the goal of maintaining stable growth in the mechanical industry, valued at 10 trillion yuan, hinges on high-end equipment, with the industrial mother machine being the core foundation of high-end equipment. The “Industrial Mother Machine+” initiatives, including production-demand matching and equipment upgrades, will directly stimulate demand in the machine tool industry. Leading enterprises in machine tools and core functional components are expected to see performance growth first.

The Machine Tool ETF (159663), closely tracking the CSI Machine Tool Index, covers a key segment of China’s manufacturing industry—high-end equipment manufacturing, including laser equipment, machine tools, robotics, and industrial control equipment. It is a core platform for implementing innovation-driven and industry-upgrading concepts. Its off-market connect funds are Class A: 017573 and Class C: 017574.

Daily Economic News