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Caixin Global

Articles from Caixin Global

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Cross Asset Strategy

<ul><li>Carbon / In Depth: China readies relaunch of shelved carbon credits program China is one step away from relaunching its voluntary carbon credits program after updating key rules for the system, which it shelved more than six years ago due to a lack of uptake and regulatory issues.</li><li><p>Plagiarism /: Chinese artist fined $684,000 in ‘landmark case’ for plagiarizing foreign work</p></li><li><p>Personnel /: China names Lan Foan to be new finance minister</p></li></ul>

Carbon / In Depth: China readies relaunch of shelved carbon credits program China is one step away from relaunching its voluntary carbon credits program after updating key rules for the system, which it shelved more than six years ago due to a lack of uptake and regulatory issues.Plagiarism /: Chinese artist fined $684,000 in ‘landmark case’ for plagiarizing foreign workPersonnel /: China names Lan Foan to be new finance minister

CX Daily: China Readies Relaunch of Shelved Carbon Credits Program 

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The underperformance of Chinese airlines looks unjustified to us, especially in view of the significant narrow-down in losses in 2Q23, particularly for <a href="https://www.smartkarma.com/entities/air-china-ltd-h" target="_blank" data-smartkarma-citation="entities:8239:1" rel="noopener">Air China Ltd (753 HK)</a>. </li>
<li>While domestic passenger capacity has fully recovered, international capacity is still more than 50% below Jun 2019. We anticipate its recovery will drive profitability over the next 12 months.</li>
<li>We prefer <a href="https://www.smartkarma.com/entities/air-china-ltd-h" target="_blank" data-smartkarma-citation="entities:8239:1" rel="noopener">Air China Ltd (753 HK)</a> given its excellent leverage to international routes and exposure to <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>. Its FY24F ROE of 45% is impressive too. </li>
</ul>


The underperformance of Chinese airlines looks unjustified to us, especially in view of the significant narrow-down in losses in 2Q23, particularly for Air China Ltd (753 HK). 
While domestic passenger capacity has fully recovered, international capacity is still more than 50% below Jun 2019. We anticipate its recovery will drive profitability over the next 12 months.
We prefer Air China Ltd (753 HK) given its excellent leverage to international routes and exposure to Cathay Pacific Airways (293 HK). Its FY24F ROE of 45% is impressive too. 


Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

<ul>
<li>In May, the recovery in outbound travel remained strong, but not surprisingly so</li>
<li>Meanwhile, improvement in domestic travel activity appears to have lost steam</li>
<li>Six months in, we simply do not see any positive surprises in the travel boom</li>
</ul>


In May, the recovery in outbound travel remained strong, but not surprisingly so
Meanwhile, improvement in domestic travel activity appears to have lost steam
Six months in, we simply do not see any positive surprises in the travel boom


Monthly Chinese Tourism Tracker | Outbound Firmer | Domestic Losing Steam | No Surprises (June 2023)

<ul>
<li>Domestic and outbound Chinese air traffic continued to recover in April, but aircraft deployed on international routes continued to operate far below capacity</li>
<li>Headline numbers from the recent Labor Day holiday period show an increase in domestic travel activity to above 2019 levels, but spending per trip remains depressed</li>
<li>Tourism activity has increased dramatically compared to 2022, but five months after most Covid-19 restrictions were lifted there are few signs of stong demand for leisure travel</li>
</ul>


Domestic and outbound Chinese air traffic continued to recover in April, but aircraft deployed on international routes continued to operate far below capacity
Headline numbers from the recent Labor Day holiday period show an increase in domestic travel activity to above 2019 levels, but spending per trip remains depressed
Tourism activity has increased dramatically compared to 2022, but five months after most Covid-19 restrictions were lifted there are few signs of stong demand for leisure travel


Monthly Chinese Tourism Tracker | Recovery Continues | But Seats Stay Empty | (May 2023)

<ul>
<li>Chinese outbound air travel in the region surged in March, up 50%+ versus February</li>
<li>Domestic improvement more muted, but still up about 75% Y/Y in Q123</li>
<li>Is the expected recovery on track? Sure, but so far no upside surprises for investors</li>
</ul>


Chinese outbound air travel in the region surged in March, up 50%+ versus February
Domestic improvement more muted, but still up about 75% Y/Y in Q123
Is the expected recovery on track? Sure, but so far no upside surprises for investors


Chinese Outbound Tourism Recovery Accelerates, But Still a Fraction of Pre-Covid Level

China

China Southern Airlines Company Limited provides air transportation services. The Company offers passenger and freight air transportation services, aviation equipment maintenance and aircraft leasing services. Shanghai Airlines also provides ticket and hotel booking and consulting services. China Southern Airlines provides services worldwide.

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China Southern Airlines (600029 CH)

CX Daily: China Readies Relaunch of Shelved Carbon Credits Program

Carbon / In Depth: China readies relaunch of shelved carbon credits program China is one step away from relaunching its voluntary carbon credits...

Caixin Global

Chinese Airlines: Taking off Again

The underperformance of Chinese airlines is unjustified. Recovery of international routes over the next 12 months and exposure to Cathay Pacific...

Osbert Tang, CFA

Monthly Chinese Tourism Tracker | Outbound Firmer | Domestic Losing Steam | No Surprises (June 2023)

The recovery in outbound travel remained strong in May, and domestic activity also continued to improve, though it appears to be losing some...

Tracking Traffic

Monthly Chinese Tourism Tracker | Recovery Continues | But Seats Stay Empty | (May 2023)

In April domestic and international air traffic continued to improve from depressed pandemic levels, but there are growing signs that Chinese...

Tracking Traffic

Chinese Outbound Tourism Recovery Accelerates, But Still a Fraction of Pre-Covid Level

Chinese tourism activity accelerated last month (particularly outbound travel), but it remains at a fraction of pre-Covid levels -- we see no...

Tracking Traffic

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