HK Stock Market Move | Aviation stocks rise in early trading, China Airlines Association issues self-discipline agreement to regulate low-price dumping and platform sales.

Aviation stocks rose in the morning session, as of the time of writing, China Eastern Airlines (00670) rose 4.73% to 3.1 Hong Kong dollars; China Southern Airlines (01055) rose 3.66% to 3.96 Hong Kong dollars; Air China Limited (00753) rose 3.15% to 5.57 Hong Kong dollars; CATHAY PAC AIR (00293) rose 0.65% to 10.79 Hong Kong dollars. On the news front, the China Air Transport Association officially released the "Air Passenger Transport Self-Discipline Convention of China Air Transport Association". The convention emphasizes strengthening industry self-discipline, maintaining market order, and enhancing anti-monopoly and anti-unfair competition measures. It advocates that all enterprises strictly comply with relevant laws such as the Price Law and the Anti-Unfair Competition Law, eliminate malicious competitive behaviors aimed at excluding competitors, including low-price dumping and false advertising. The self-discipline clauses also propose strengthening supervision and management of airline ticket prices, refund and change rules executed by aviation sales network platforms and sales agents, and strictly prohibit illegal bundling sales and price markups. Guotai Haitong pointed out that the summer travel passenger load factor remains high, fuel ticket prices continue to hold steady, and significant profits can be expected during the summer travel season. The bank pointed out that the Civil Aviation Administration of China recently deployed a comprehensive rectification of "internal competition", expecting a reduction in excessively low prices in the short term; revenue management improvements may be policy-guided in the medium term; and long-term fleet planning will continue to see low growth. It is suggested to focus on the recovery of public and business travel demand and anti-internal competition in the short term and to position against the trend.