HK Stock Market Move | Aviation stocks fall again, Q2 performance may significantly decrease due to oil prices. Institutions point out that the strait and oil prices will still determine market trends.

Aviation stocks fell again. As of the time of writing, China Eastern Airlines (00670) fell by 6.85% to HK$31.3; Air China Limited (00753) fell by 4.97% to HK$4.21; China Southern Airlines (01055) fell by 3.16% to HK$3.38; MEILAN AIRPORT (00357) fell by 2.41% to HK$4.05. In terms of news, according to CCTV News, the Iranian Ministry of Foreign Affairs issued a statement on the evening of June 29, clearly stating that Iran will independently carry out the clearing of mines in the Strait of Hormuz and will not cooperate with any other country, directly rejecting the joint mine-clearing proposal announced by French President Macron. Iran also stated that if Oman does not intend to participate in joint management, Iran will continue to unilaterally monitor the navigation traffic in the Strait of Hormuz. Sinolink released a research report stating that it is expected that airline performance in Q2 may drop significantly due to oil price factors, and the subsequent opening of the strait and marginal changes in oil prices may determine the trend of the aviation sector. CMSC also stated that in the short term, oil prices and the geopolitical situation in the Middle East are the most critical factors affecting industry operations and profitability, and short-term cost pressures may have peaked. Attention should be paid to the progress of future US-Iran talks and changes in oil prices.