Understanding the Market | Airline stocks collectively declined as international oil prices rebounded slightly. Morgan Stanley previously stated that the sustainability of the sector's rebound is uncertain

Aviation stocks collectively fell. As of the time of publication, China Southern Airlines dropped 4.53% to HKD 3.79; China Eastern Airlines fell 3.5% to HKD 3.03; Air China decreased 2.68% to HKD 5.45; Meilan Airport declined 1.42% to HKD 10.43. On the news front, OPEC+ agreed to increase crude oil production by 137,000 barrels per day in November, with the increase lower than expected, leading to a rebound in oil prices. JP Morgan previously released a research report stating that the aviation sector has underperformed the market so far this year due to cost pressures, intensified competition, and weak pricing power, which have put profits under pressure. The sustainability of the recent rebound in sector stock prices remains uncertain as the industry is about to enter the off-season. The bank stated that the impact of anti-involution and related regulatory measures is limited, and such measures currently still struggle to materially improve pricing levels, maintaining the forecast of flat prices from 2025 to 2027