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Caixin Global

Articles from Caixin Global

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Cross Asset Strategy

<ul><li>In Depth: China Tightens Rules for Freewheeling Drone Hobbyists</li><li>China’s Factory Activity Returns to Expansion in March Amid Surging Costs</li><li>Hong Kong Delays Issuance of First Compliant Stablecoin Licenses</li></ul>

In Depth: China Tightens Rules for Freewheeling Drone HobbyistsChina’s Factory Activity Returns to Expansion in March Amid Surging CostsHong Kong Delays Issuance of First Compliant Stablecoin Licenses

CX Daily: China Tightens Rules for Freewheeling Drone Hobbyists 

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>So far, global markets remain optimistic that the damage from the war in Iran will be repaired relatively soon; however, that will change as the war enters its second month.</li>
<li>Asian countries are highly dependent on oil and gas shipments from the Middle East, with airlines, petrochemical companies, and gas distribution companies all negatively affected.</li>
<li>Iran now controls when the flow of energy from the Middle East starts and thereby when the war stops. Gulf countries will not allow Iran to be the Straits gatekeeper.</li>
</ul>


So far, global markets remain optimistic that the damage from the war in Iran will be repaired relatively soon; however, that will change as the war enters its second month.
Asian countries are highly dependent on oil and gas shipments from the Middle East, with airlines, petrochemical companies, and gas distribution companies all negatively affected.
Iran now controls when the flow of energy from the Middle East starts and thereby when the war stops. Gulf countries will not allow Iran to be the Straits gatekeeper.


OIL: When a Short-Term Spike Becomes Long-Term Reality

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The airlines and marine transportation sectors are the most exposed to the rise in Brent oil prices caused by the current US-Iran conflicts in the Middle East.</li>
<li>For the airlines, <a href="https://www.smartkarma.com/entities/china-eastern-airlines-co-h" target="_blank" data-smartkarma-citation="entities:1079:1" rel="noopener">China Eastern Airlines (670 HK)</a> is the most vulnerable, while <a href="https://www.smartkarma.com/entities/cathay-pacific-airways-ltd" target="_blank" data-smartkarma-citation="entities:243:1" rel="noopener">Cathay Pacific Airways (293 HK)</a> is relatively more insulated.</li>
<li>For marine transportation, <a href="https://www.smartkarma.com/entities/sitc-international-holdings" target="_blank" data-smartkarma-citation="entities:15301:1" rel="noopener">SITC International (1308 HK)</a> is the least exposed, but <a href="https://www.smartkarma.com/entities/pacific-basin-shipping-ltd" target="_blank" data-smartkarma-citation="entities:929:1" rel="noopener">Pacific Basin Shipping (2343 HK)</a> looks to be more negatively affected.</li>
</ul>


The airlines and marine transportation sectors are the most exposed to the rise in Brent oil prices caused by the current US-Iran conflicts in the Middle East.
For the airlines, China Eastern Airlines (670 HK) is the most vulnerable, while Cathay Pacific Airways (293 HK) is relatively more insulated.
For marine transportation, SITC International (1308 HK) is the least exposed, but Pacific Basin Shipping (2343 HK) looks to be more negatively affected.


HK Strategy: Assessing the Oil Vulnerability

<ul>
<li>The appreciation of Rmb will bring benefits to some companies. With a lower USD rate and an inflow of funds to China, this trend is expected to continue into 2026.</li>
<li>
<a href="https://www.smartkarma.com/entities/h-world-group-ltd" target="_blank" data-smartkarma-citation="entities:33487:1" rel="noopener">H World Group (1179 HK)</a>, <a href="https://www.smartkarma.com/entities/china-everbright-environment-group-limited" target="_blank" data-smartkarma-citation="entities:15946:1" rel="noopener">China Everbright Environment (257 HK)</a>, and <a href="https://www.smartkarma.com/entities/china-national-building-ma-h" target="_blank" data-smartkarma-citation="entities:184:1" rel="noopener">China National Building Material (3323 HK)</a> are the most likely ones to gain the most.</li>
<li>The newly listed companies in Hong Kong are exposed due to the translation of massive HKD proceeds to Rmb, with the impact on <a href="https://www.smartkarma.com/entities/sicc-co-ltd-e5b2bacc-ed46-4d8e-bfb1-ff952e730eae" target="_blank" data-smartkarma-citation="entities:45752:1" rel="noopener">SICC (2631 HK)</a> being the heaviest. </li>
</ul>


The appreciation of Rmb will bring benefits to some companies. With a lower USD rate and an inflow of funds to China, this trend is expected to continue into 2026.

H World Group (1179 HK), China Everbright Environment (257 HK), and China National Building Material (3323 HK) are the most likely ones to gain the most.
The newly listed companies in Hong Kong are exposed due to the translation of massive HKD proceeds to Rmb, with the impact on SICC (2631 HK) being the heaviest. 


China Strategy: Revisiting the Rmb Appreciation Story

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of CSI 300 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on CHINA VANKE, CHINA RAILWAY CONSTRUCTION, COSCO SHIPPING, CHINA STATE CONSTRUCTION ENGINEERING, Longi Green, CHONGQING ZHIFEI BIOLOGICAL PRODUCTS, WENS FOODSTUFF, KUNLUN TECH.</li>
</ul>


We analysed the earning revision of component stocks of CSI 300 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on CHINA VANKE, CHINA RAILWAY CONSTRUCTION, COSCO SHIPPING, CHINA STATE CONSTRUCTION ENGINEERING, Longi Green, CHONGQING ZHIFEI BIOLOGICAL PRODUCTS, WENS FOODSTUFF, KUNLUN TECH.


CSI 300 Index Earning Revision (Sep): CHINA VANKE, CHINA RAILWAY CONSTRUCTION, COSCO SHIPPING

China

China Eastern Airlines is a major Chinese airline providing domestic, regional, and international passenger flight services, along with air cargo, logistics, and ancillary services such as aircraft maintenance and in-flight catering. Headquartered in Shanghai, China, it was founded in 1988.

Price Gauge
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China Eastern Airlines (670 HK)

CX Daily: China Tightens Rules for Freewheeling Drone Hobbyists

TOP STORIES In Depth: China Tightens Rules for Freewheeling Drone Hobbyists In January, Sun Wei was detained by authorities after flying a drone...

Caixin Global

OIL: When a Short-Term Spike Becomes Long-Term Reality

So far, global markets remain optimistic that the damage from the war in Iran will be repaired relatively soon; however, that will change as the...

David Mudd

HK Strategy: Assessing the Oil Vulnerability

Rise in Brent oil prices due to US-Iran conflicts hits airlines and marine transportation sectors as fuel and bunker costs increase, with China...

Osbert Tang, CFA

China Strategy: Revisiting the Rmb Appreciation Story

The Rmb has accelerated its appreciation this year, with a gain of 1.1% against the USD in just under 1.5 months. In 2025, it appreciated 4.3%,...

Osbert Tang, CFA

CSI 300 Index Earning Revision (Sep): CHINA VANKE, CHINA RAILWAY CONSTRUCTION, COSCO SHIPPING

We analyzed CSI 300's consensus for Sep 2026 and highlighted changes of EPS in CHINA VANKE (000002 CH), CHINA RAILWAY CONSTRUCTION (601186 CH),...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

CX Daily: China Tightens Rules for Freewheeling Drone Hobbyists

TOP STORIES In Depth: China Tightens Rules for Freewheeling Drone Hobbyists In January, Sun Wei was detained by authorities after flying a drone...

Caixin Global

OIL: When a Short-Term Spike Becomes Long-Term Reality

So far, global markets remain optimistic that the damage from the war in Iran will be repaired relatively soon; however, that will change as the...

David Mudd

HK Strategy: Assessing the Oil Vulnerability

​Rise in Brent oil prices due to US-Iran conflicts hits airlines and marine transportation sectors as fuel and bunker costs increase, with China...

Osbert Tang, CFA

China Strategy: Revisiting the Rmb Appreciation Story

The Rmb has accelerated its appreciation this year, with a gain of 1.1% against the USD in just under 1.5 months. In 2025, it appreciated 4.3%,...

Osbert Tang, CFA

CSI 300 Index Earning Revision (Sep): CHINA VANKE, CHINA RAILWAY CONSTRUCTION, COSCO SHIPPING

We analyzed CSI 300's consensus for Sep 2026 and highlighted changes of EPS in CHINA VANKE (000002 CH), CHINA RAILWAY CONSTRUCTION (601186 CH),...

Ke Yan, CFA, FRM

Rise in Brent oil prices due to US-Iran conflicts hits airlines and marine transportation sectors as fuel and bunker costs increase, with China...