HK Stock Market Move | Airline stocks lead the decline. Uncertainty over the U.S.-Iran situation persists. International oil prices surge over 30% in the third quarter.

Airline stocks lead the decline. As of press time, China Eastern Airlines (00670) fell 6.27% to HK$2.465; Air China Limited (00753) fell 5.57% to HK$3.73; China Southern Airlines (01055) fell 4.97% to HK$2.87; CATHAY PAC AIR (00293) fell 2.1% to HK$14.43. On the news front, uncertainty over the U.S.-Iran situation persists. Trump recently said that if a satisfactory agreement cannot be reached, he may intensify bombing after the midterm elections rather than end the war. Another report said the Pentagon is sending a third carrier strike group and more Marine amphibious ships to the Middle East, with an expected 9,000 to 10,000 additional U.S. troops, and the relevant ships, fighter jets and personnel will arrive before the end of November. It is worth noting that, affected by geopolitical conflict, international oil prices surged more than 30% in the third quarter. High oil prices will directly hit airlines' cost side. According to the historical financial reports of major airlines, jet fuel costs usually account for 30% to 40% of operating costs. In the first half of this year, the three major airlines all achieved double-digit year-on-year revenue growth, but due to the combined impact of multiple factors including high and volatile jet fuel prices, they remained in a state of overall continuous losses, with a combined net loss of 8.161 billion yuan.