HK Stock Market Move | Aviation stocks rose across the board in the early trading session, as the appreciation of the renminbi eased the pressure on airlines' foreign exchange. The aviation industry will benefit from the holiday season catalyst.

Aviation stocks rose across the board in the morning session. As of the time of writing, Air China Limited (00753) was up 4.41% at HK$7.1, China Eastern Airlines (00670) was up 3.73% at HK$5.29, and China Southern Airlines (01055) was up 1.97% at HK$5.7. On the news front, the offshore renminbi exchange rate against the US dollar recently broke through the "7" integer mark. According to CCTV finance report, the New Year's Day holiday in 2026 is approaching, and more and more consumers are ushering in the new year through travel. Data shows that during the 2026 New Year's Day holiday, ticket bookings from cities like Beijing, Tianjin, Shanghai to popular destinations such as Sanya, Haikou, Kunming, Guangzhou, Changbai Mountain Tourism, and Harbin have seen a rapid increase. As of December 25th, domestic flight ticket bookings have exceeded 2.71 million, an increase of about 35% year-on-year. Zhongtai believes that with the appreciation of the renminbi exchange rate, the pressure of foreign exchange translation for airlines has eased. In addition, with the approaching New Year's Day holiday (which will be from January 1st (Thursday) to January 3rd (Saturday) in 2026), the flexible holiday schedule can be extended through clever planning, which bodes well for air travel. In the short term, with the decline in crude oil prices, the strengthening of the renminbi exchange rate, and the catalyst of the New Year and Spring Festival holidays, there is a strong expectation for improvement in air traffic volume and prices, and the aviation investment opportunities driven by positive fundamental changes are promising.