HK Stock Market Move | Transportation stocks collectively decline, Houthi armed forces announce ceasing attacks on commercial ships, market focus on the prospects of Red Sea navigation.

Shipping stocks collectively fell, as of the time of writing, TS LINES (02510) fell 4.92% to 8.7 Hong Kong dollars; SITC (01308) fell 2.89% to 29.58 Hong Kong dollars; COSCO Shipping Holdings (01919) fell 2.33% to 13.83 Hong Kong dollars; OOIL (00316) fell 1.93% to 132.2 Hong Kong dollars. On the news front, Houthi rebels warned on November 9th local time that if the ceasefire agreement in the Gaza Strip collapses and Israel resumes its attack on Gaza, the organization will resume attacks on Israel and prohibit Israeli vessels from sailing in the Red Sea and the Arabian Sea. Since the ceasefire began on October 10th, the organization has not claimed any attacks, and the market interprets the message as the Houthis have stopped attacks. The market also worries that a large-scale return to the Red Sea could cause a further significant drop in freight rates on global shipping routes. China National Futures released a research report stating that media reports of Houthi rebels announcing a halt to attacks on commercial ships in the Red Sea still need to be verified for authenticity. Even if individual senior officials of the Houthi rebels have made similar statements, shipping companies may still be concerned that the rebels could change their stance due to the Gaza issue and may not immediately resume full operations. The possibility of taking gradual trial sailings is higher.