Caterpillar contrarian do more than the Chinese market, at the same time, based on the Chinese market charm, Taiwan's machine tool industry is Japanese.

Orient securities jan 9, research report pointed out that the overseas market: the Hong Kong stock exchange industrial machinery in 2010, the average p/e ratio is 16.72, weekly decline by 5.12%; Exchange of Japan industrial machinery in 2010, the average p/e ratio is 35.11, weekly decline by 0.54%; German exchange industrial machinery in 2010, the average p/e ratio is 43.88, week up 2.96%; UK industrial machinery in 2010, the average p/e ratio is 17.29, week up 0.93%; U.S. exchanges industrial machinery average p/e ratio of 22.79, 2010, weeks, or 3.4%.

Market hot spots and investment advice: caterpillar contrarian do more in the Chinese market. Caterpillar group President Richard levin (RichardLavin) said: "in terms of in the future of China, is optimistic and full of confidence." Levin said the construction equipment industry in 2012 is expected to be about 10% on the basis of the growth in 2011. Caterpillar is in China for the rapid growth of one of several heavy equipment manufacturer, and has invested in a series of projects, from residential to infrastructure development. But levin in November last year warned that China's construction equipment market this year and possible overcapacity, caterpillar, so will face pressure on prices. Caterpillar is expected in 2012 China's GDP will grow by 8.5 to 9%, the industry growth rate is expected to GDP growth. Caterpillar prediction is consistent with the Chinese academy of social sciences, which is expected in 2012 China's GDP growth fell to 8.9% from 9.2% in 2011. Caterpillar is in China's mining market saw an opportunity. Last November, bid $885 million for the company headquarters in Hong Kong s coal mine mechanical and electrical equipment manufacturing co., LTD. (ERAMiningMachinery), in order to strengthen its mining operations.its mining operations.

Based on the Chinese market charm, Taiwan's machine tool industry by the Japanese. In 2010, Taiwan and the mainland of China after the signing of the ECFA, export to the mainland part of the machine tool project can enjoy zero tariff treatment, Japanese machine tools to Taiwan investment boom. Apply mechanical last November decision in Taiwan after division iii park set up the first overseas production base, investment amount, although only nt $264 million, but does not rule out the possibility of continue to increase investment. Apply mechanical ministry official said the storehouse is very bullish on the Chinese mainland market, hoping to Taiwan as a production base. 311 earthquake in Japan and the yen soared, under the influence of Japanese have to seek a redundant overseas base to spread risk, especially Taiwan and the mainland signed ECFA, has more advantages than other regions, is expected to reach 2011 Taiwan machine tool export amount more than $4 billion, is expected to be fit for the first time in Italy, to become the world's top three machine tool export region, second only to Japan and Germany.