HK Stock Market Move | Capital Airport (00694) rose more than 6%, leading the aviation stocks. The strengthening of the Chinese yuan has eased the pressure of exchange rate. The National Day holiday is expected to have strong supply and demand.

Aviation stocks collectively rose, as of the time of publication, Capital Airport (00694) rose by 6.27% to 2.71 Hong Kong dollars; MEILAN AIRPORT (00357) rose by 4.86% to 7.34 Hong Kong dollars; Air China Limited (00753) rose by 4.72% to 3.33 Hong Kong dollars; China Southern Airlines (01055) rose by 3.24% to 2.55 Hong Kong dollars; and China Eastern Airlines (00670) rose by 2.26% to 1.81 Hong Kong dollars. On the news front, the offshore renminbi against the US dollar regained the 7.0 level, reaching a high of 6.9993, the first time since May last year. Zhongtai pointed out that the continued strength of the renminbi exchange rate is expected to alleviate the exchange rate pressure on airlines. During the Mid-Autumn Festival holiday, civil aviation travel was affected by typhoons, but with the typhoon gradually passing, it is expected that travel demand will gradually improve; the upcoming National Day holiday is still expected to see a prosperous supply and demand situation. The bank pointed out that overall, the recovery trend of the industry is improving this year, flight operation efficiency continues to improve, as international routes gradually recover, the overall supply and demand situation in the industry is expected to continue to improve, and airline performance is expected to continue to improve. In addition, airports will benefit from the recovery of air travel demand, with both aviation revenue and non-aviation revenue expected to improve significantly.