In early trading on June 10, the A-share market as a whole showed a weakening trend, with the three major indexes collectively turning green.
Among them, the Shanghai Composite Index fell by 0.45%, and the ChiNext Index’s volatility increased, with the decline expanding to 2.00%.
In this market context, the mechanical ETF Cathay Pacific (516960) is also under pressure simultaneously.
As of 10:12 a.m., its decline was 2.81%, with a turnover of 175,400 yuan, but liquidity still maintained basic activity.
Machinery ETF Cathay (516960) closely tracks the CSI subdivision machinery and equipment industry theme index.
As an important component of the CSI segmented industry theme index series, this index focuses on representative listed companies with large scale and excellent liquidity in the field of machinery and equipment.
It covers core sub-industries such as high-end equipment, industrial automation, engineering machinery, and intelligent logistics equipment. It is an important window for observing the transformation, upgrading and high-end evolution of my country’s manufacturing industry.
From a valuation perspective, as of the latest data, the PE of the CSI segmented machinery and equipment industry theme index is 34.20 times, which is in the 20%-80% range in the past year (historical extreme value 29.84–41.23).
This shows that its valuation level is neither significantly undervalued nor overvalued. It is overall in a reasonable central zone and has a safety margin and flexibility for medium- and long-term allocations.
A recent research report from Cathay Haitong Securities pointed out that in the context of the continued implementation of new industrialization and large-scale equipment renewal policies, the machinery and equipment industry is undergoing a dual-track driven transformation from ‘inventory replacement’ to ‘intelligent upgrade + green replacement’.
Starting from Q2 of 2026, signs of improvement in general automation orders are beginning to show, and the penetration rate of some subdivisions such as humanoid robot joint modules, photovoltaic/lithium battery special equipment, and domestic CNC systems is accelerating.
This view is based on high-frequency industry data and survey feedback from leading companies in May 2026, and has strong timeliness and industry support.
The current market adjustment has not changed the main line of high-quality development of the manufacturing industry.
The machinery ETF Cathay (516960), as a pure machinery and equipment themed ETF that is scarce in the market, has both industry focus and instrumental allocation efficiency, providing an efficient and transparent on-site carrier for investors to participate in the “Manufacturing Power” strategy.
It should be noted that the mention of individual stocks is only used for industry event analysis and does not constitute any individual stock recommendation or investment advice.
The short-term rise and fall of indices and other indicators are for reference only and do not represent their future performance, nor do they constitute a commitment or guarantee for the performance of the fund.
Views may be adjusted as the market environment changes and do not constitute investment advice or commitment.
Mentioning that funds have different risk and return characteristics, investors are advised to read the fund’s legal documents carefully, fully understand the product elements, risk levels and income distribution principles, choose products that match their own risk tolerance, and invest prudently.
Please consult legal documents regarding fund rates.
