HK Stock Market Move | COSCO Shipping Holdings(01919) once fell more than 9%, China Merchants Group was included in the CMC list, and the restructuring of the shipping alliance may trigger a price war among shipping companies.

COSCO Shipping Holdings (01919) plummeted at the opening, with the stock price falling over 9% at one point. As of the time of writing, it has fallen 4.26% to 11.68 Hong Kong dollars, with a turnover of 1.99 billion Hong Kong dollars. On the news front, on January 7th, China Ocean Shipping Group issued a statement noting that the U.S. Department of Defense recently added China Ocean Shipping Group Limited, COSCO Shipping (North America) Inc., and COSCO Shipping Financial Co., Ltd. to the "Chinese Military Companies" list. These three companies are not "Chinese Military Companies," and the company will communicate with relevant U.S. parties to clarify the facts. The inclusion of these three companies on the list does not mean they have been sanctioned or placed on any export control list, and will not affect the business and global operations of China Ocean Shipping Group. In addition, the shipping index (European route) futures prices have been weakening recently, while the American shipping rates have been rising for several weeks. One Derivative Futures pointed out that the risk of strikes at East Coast U.S. ports has increased, which could lead to a rise in American shipping rates or an increase in the likelihood of shipping companies supporting European rates. The dissolution of existing shipping alliances in January will reshape the shipping market landscape, decrease concentration, and intensify competition among newly formed alliances. To increase market share, shipping companies may adopt pricing strategies to suppress shipping rates. As the long Chinese New Year holiday approaches, the number of canceled sailings is expected to increase significantly, with shipping companies reducing capacity to prevent oversupply, slowing down the decline in shipping rates during the holiday period.