HK Stock Market Move | COSCO Shipping Energy Transportation (01138) falls by over 4% again, Russia and Ukraine negotiations accelerate, market worries about trade restructuring setbacks and decline in oil shipping sector.

COSCO Shipping Energy Transportation (01138) fell by over 4%, as of the time of writing, down 3.5% to 6.62 Hong Kong dollars, with a trading volume of 170 million Hong Kong dollars. On the news front, according to Caixin, the second round of talks between Russia and the US will take place in Riyadh, with media reports suggesting it will be on Tuesday. The peace plan between the US and Russia is said to consist of three stages, possibly including a ceasefire agreement, new elections in Ukraine, and signing of a peace agreement. The market is anticipating that talks between Russia and Ukraine may accelerate in the near future. Guotai Junan pointed out that the Russia-Ukraine conflict erupted at the beginning of 2022, leading to sanctions from Europe and the US against Russia, and restructuring the global oil trading. This drove an increase in oil shipping distance and demand, boosting the industry. There are concerns in the market that talks between Russia and Ukraine may result in a reversal of the trade restructuring and a decline in oil shipping industry. According to the recent communication with the industry, it is believed that the impact of talks between Russia and Ukraine on oil shipping may be relatively limited, with the industry being more optimistic than the capital market.