China Industrials — Industrial insights (September): Industry performance continues to diverge

We present key industrial data in our monthly China Industrials Chartbook. Recent data remain mixed: domestic demand is weak, reflected in soft excavator and HDT sales and sluggish infrastructure investment, while factory automation orders, shipbuilding and industrial exports remain resilient. China industrials broadly tracked the CSI 300 over the past month, with shipbuilding, renewable equipment and defence outperforming, while construction machinery and HDTs lagged. Investor interest improved modestly on shipbuilding and mining equipment, though earnings visibility remains a key concern. We prefer companies offering earnings visibility or structural growth with limited downside and attractive valuations. Factory automation and machine tool demand remain resilient;