According to the relevant parties that a tightening interest rates to the market expectations, suppressing investment enthusiasm will help prevent asset bubbles, have a negative impact on the real estate market, so the construction machinery industry and other capital goods associated with large machinery brings negative impact on the demand side. The interest rate, long-term deposit interest rates is more obvious, compared to lending rates were little changed, indicating that the Government in addressing the issue of negative interest rates, taking into account real estate and fixed asset investment goods pressure. Therefore, we believe that the current round of interest rate on the capital goods manufacturing company, but a negative impact on efforts already under control.

    Interest rates affect the mechanical way of corporate profits from three aspects: 1, is lower interest rates to avoid inflation brought about by the investment function, and thus suppress the investment enthusiasm; 2, is the purchase of equipment side as a result of interest rate hikes the cost of upgrading pressing needs; 3, is to create the company itself and if the balance has been high interest coverage is low, the demand side is not considered the sale to bring change, interest rates will directly affect the net profit of listed companies.

    In all types of machinery companies, the purchase of construction equipment to be provided to the buyer's credit, and generally higher rate of corporate assets and liabilities, generally above 65%, plus interest on the construction machinery company relatively strong negative effect; followed , weight, and Mining equipment manufacturing company asset-liability ratio is higher, greater influence by interest rates. Overall, corporate profits by raising interest rates mechanical impact than most other manufacturing industries. But we need to propose, in Sany Heavy Industry Machinery Co., Ltd. (600031), Xiamen Engineering shares (600,815) and the Zhengzhou Mining Machinery (601 717) Although the balance is high, but because of strong profitability, has been as high as 30-40 times and interest cover or more, so interest rates directly affect the extent of their profits than other companies.