HK Stock Market Move | Aviation stocks rebound across the board; airlines actively respond to oil price pressures. Institutions suggest that the actual impact on profits is expected to be smaller than market concerns.

Aviation stocks rebounded across the board. As of the time of writing, China Eastern Airlines (00670) rose by 6.69% to HK$3.67; Air China Limited (00753) rose by 4.54% to HK$4.84; China Southern Airlines (01055) rose by 3.81% to HK$4.09; CATHAY PAC AIR (00293) rose by 2.08% to HK$12.27. On the news front, the high international oil prices have also pushed up aviation fuel prices, and airlines are taking multiple strategies to deal with this. It is reported that CATHAY PAC AIR will hedge 30% of its fuel prices, China Eastern Airlines announced plans to conduct fuel hedging business, United Airlines announced a 5% capacity reduction and suspended inefficient routes. China Everbright Securities issued a research report stating that the geopolitical oil price risks in the Middle East are expected to have a smaller actual profit impact than market concerns, providing a rare opportunity for counter-trend trading, and it is recommended to actively increase holdings in the aviation sector.