HK Stock Market Move | Aviation stocks across the board are rising, with offshore yuan against the US dollar breaking through 6.85. The appreciation of the yuan is beneficial for airlines to release their performance.

Airline stocks are all rising. As of the time of publication, China Eastern Airlines (00670) rose by 5.42% to HKD 6.03; China Southern Airlines (01055) rose by 3.9% to HKD 6.4; Air China Limited (00753) rose by 2.66% to HKD 7.34; CATHAY PAC AIR (00293) rose by 1.11% to HKD 13.7. On the news front, the offshore RMB against the US dollar broke through 6.85, reaching a new high since April 14, 2023. It is reported that airline companies have a significant amount of foreign currency debt, mainly in US dollars, and a weaker US dollar will help generate exchange gains. Guosen previously stated that lower oil prices and RMB appreciation are beneficial to airlines in releasing their performance. Shenwan Hongyuan Group also stated that the current aircraft manufacturing chain is facing unprecedented difficulties, with supply highly constrained, passenger load levels reaching historical highs, and a clear growth trend in inbound and outbound passenger traffic. The investment in the aviation sector is expected to usher in a golden age. Looking ahead, the warming weather will accelerate the benefits for March travel; under the background of "late Spring Festival travel", various industries are rushing to meet first-quarter order tasks, and it is expected that public and commercial activities will recover quickly in March; China and the US will hold a summit, with expectations of increased air routes between China and the US in the future.