Daily focus：China Eastern Airlines (670)
China Eastern Airlines achieved high-quality growth on both the supply and demand sides. Data shows that China Eastern Airlines' passenger capacity (ASK) increased by 6.51% year-on-year in November, while its passenger traffic volume (RPK) increased even more significantly by 10.35%. This widening supply-demand gap directly drove the load factor up to 87.37%, a year-on-year increase of 3.04 percentage points, better than China Southern Airlines' 86.29% and Air China's 83.3%. Furthermore, China Eastern also performed well in cargo, with cargo and mail turnover increasing significantly by 13.30% year-on-year. It actively optimized its route network, launching and increasing the frequency of several popular international routes, including Beijing Daxing to Muscat and Shanghai Pudong to Melbourne. The fleet size also steadily expanded to 825 aircraft, including the continued introduction of the domestically produced C919 aircraft.
Green Light: Smart Driving’s “Second Half” & Top Picks
The Ministry of Industry and Information Technology (MIIT) officially announced the first batch of Level 3 conditional autonomous driving vehicle approvals, with Changan Automobile and BAIC Blue Valley (Jihu) leading the pack. Both automakers are authorized to conduct on-road pilot tests on designated highways and expressways in Chongqing and Beijing, respectively, at speeds of up to 50 km/h and 80 km/h. This approval signifies that China's autonomous driving industry has officially entered a new stage of compliant on-road operation and pilot testing, moving beyond simple technology research and development. This not only lays the regulatory foundation for large-scale commercialization but will also exacerbate market differentiation—leading automakers with advanced intelligent driving capabilities will use this to build technological moats, indicating that the "second half" of the intelligent connected vehicle race has accelerated. We believe that leading automakers and related equipment stocks in autonomous driving technology are likely to outperform.
On Monday, Hong Kong Stock Connect saw a net inflow of HK$3.65bn, with Xiaomi Group (1810) experiencing the largest net inflow at HK$1.38bn, followed by Ping An Insurance (2318). On the other hand, Tencent Holdings (0700) recorded the largest net outflow at HK$770mn, followed by Hua Hong Semiconductor (1347).
China's November economic data all fell short of consensus. Hong Kong stock maret followed the global market's downward trend this morning. The HSI opened 258 points lower and then widened its losses, closing down 347 points or 1.3% at 25,628; the HSCEI fell 161 points or 1.8% to 8,917; and the HSTECH fell 139 points or 2.5% to 5,498. Total market turnover was HK$204.3bn. HSBC (0005) plans to privatize Hang Seng Bank (0011) at HK$155 per share, with a vote scheduled for November 8th. HSBC fell 0.9%, while Hang Seng rose 0.3% to HK$153.5. Pharmaceutical stocks were under pressure, with Hansoh (3692) and BeiGene (6160) falling 7.6% and 8.1% respectively, with Hansoh being the biggest loser among blue chips.
Source: KGI Investment Products and Solutions Department
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
The AI Big four spent $230bn in capex. AI applications are driving demand for data centers and energy facilities, boosting jobs and productivity, as well as supporting U.S. GDP growth…