HK Stock Market Move | COSCO Shipping Energy Transportation (01138) falls more than 5% as the closure of the Strait of Hormuz continues. The company stated that they are still evaluating the safety situation.

COSCO Shipping Energy Transportation (01138) fell more than 5%, dropping 4.94% to HKD 20 as of press time with a turnover of 321 million Hong Kong dollars. On the news front, according to First Financial Daily, a securities official from COSCO Shipping Energy Transportation responded to questions about whether Chinese cargo ships had successfully passed through the Strait of Hormuz into open seas, saying that they are still evaluating the security situation. In addition, a securities official from China Merchants Energy Shipping revealed that the company currently has no ships stranded in the Persian Gulf, and there are no plans to pass through the risk area after the war. Instead, they are opting for other transportation routes, with current tanker freight rates rising by over 50% compared to before the conflict. China Securities Co., Ltd. had previously released a research report stating that the easing of U.S. sanctions on Iranian oil is bullish for the oil shipping market in the short term and bearish in the long term. On March 20, the U.S. granted a 30-day waiver for the shipment of 140 million barrels of Iranian oil at sea to curb high oil prices temporarily. In the short term, Asian floating storage of crude oil will be concentrated on unloading, temporarily releasing shipping capacity. In the medium to long term, the risks of passage through the Strait of Hormuz are at a high, Iran has no surplus oil supply, Asian refineries are turning to sources in the Atlantic Basin, and the longer shipping routes are increasing demand for tanker ton-miles.