BofAS Raises Price Targets for Three Major Chinese Airlines and Upgrades AIR CHINA to Buy
Positive Outlook for Asia-Pacific Airlines: BofA Securities projects strong airline profits in 2026 due to high ticket prices, healthy demand, improved cargo fundamentals, and potential oil supply surplus benefits.
Target Price Adjustments for Airlines: BofA raised target prices for several airlines, including CHINA EAST AIR to HKD2.9 (Underperform), CHINA SOUTH AIR to HKD5.92 (upgraded to Neutral), and AIR CHINA to HKD8.3 (upgraded to Buy).
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China Eastern Airlines Partners with Alibaba's Qianwen and Fliggy for AI Collaboration
Stock Performance: CHINA EAST AIR's stock has decreased by 1.911%, with a short selling amount of $8.62 million and a ratio of 4.734%.
AI Collaboration: The airline has partnered with Alibaba's Qianwen and Fliggy to offer exclusive discounts for users purchasing tickets through the Qianwen app, labeled as "Qianwen Exclusive Price".
Future Plans: CHINA EAST AIR intends to enhance its collaboration with Alibaba to expand its "Air Ticket+" offerings and lifestyle services, aiming for more interactive customer experiences.
Market Information: The stock quote for CHINA EAST AIR is delayed by at least 15 minutes, with short selling data reported as of February 10, 2026.
M Stanley Bullish on Recovery for Three Major Chinese Airlines, Raises Price Targets
Airline Industry Outlook: Morgan Stanley predicts a multi-year cyclical improvement in the airline industry, gaining momentum in 2026-2027 due to increased demand, despite low investor confidence.
Target Price Increases: The broker raised target prices for the airline sector by an average of 42% and upgraded the A-shares of three major airlines to Overweight.
Passenger Load Factor Improvement: An estimated annual improvement of 1-2 percentage points in the passenger load factor (PLF) suggests stronger pricing power for airlines.
Optimistic Profit Margin Potential: Morgan Stanley maintains an optimistic view on the supply-driven upcycle for Chinese airlines, indicating potential upside for profit margins if pricing exceeds expectations.
Midday Update: HSI Ends at 26,724, Down 109 Points; HSTI at 5,347, Down 119 Points; TENCENT Falls Over 3%; XINYI GLASS, TECHTRONIC IND, WHARF REIC, YANKUANG ENERGY, and CHINA EAST AIR Reach New Highs
Market Performance: The HSI dropped 109 points (0.4%) to 26,724, while the HSTI fell 119 points (2.2%) to 5,347, and the HSCEI decreased by 48 points (0.5%) to 9,004.
Active Heavyweights: Major stocks like TENCENT, XIAOMI, and MEITUAN saw declines, with TENCENT down 3.4% and XIAOMI down 2.6%, while BABA fell 0.9%.
Notable Movers: XINYI GLASS and CHINA SHENHUA experienced significant gains, with XINYI GLASS up 6.2% and CHINA SHENHUA up 5.4%, while TRIP.COM-S dropped 6.1%.
Short Selling Trends: High short selling ratios were observed in several stocks, including XIAOMI (20.155%) and MEITUAN (17.261%), indicating increased bearish sentiment among investors.
CHINA EAST AIR Anticipates Net Loss for Shareholders Between Approximately RMB 1.3 Billion and RMB 1.8 Billion Last Year
Profit Forecast: CHINA EAST AIR (00670.HK) anticipates a total profit of approximately RMB200-300 million for the year 2025, in line with the China Accounting Standards for Business Enterprises.
Stock Performance: The company's stock has seen an increase of +0.090 (+1.661%).
Short Selling Activity: There is a reported short selling amount of $28.66 million.
Short Selling Ratio: The short selling ratio stands at 26.187%.
AH Smart Index Removes CEA/TSINGTAO BREWERY and Adds SANY HEAVY INDUSTRIES/SERES
Index Review Announcement: The China Securities Index Company and Hang Seng Indexes Company released the half-yearly review results for the Hang Seng CSI Shanghai-Hong Kong AH Smart Index, which includes the largest 50 AH companies under the Shanghai-Hong Kong Stock Connect programme.
Constituent Changes: The index maintains 50 constituent companies, with SANY HEAVY INDUSTRIES and SERES being newly included, while CEA and TSINGTAO BREWERY were excluded.
Future Share Class Determination: The share classes of the companies included in the index will be determined in March 2026, aligning with the monthly share class switching exercise.
Market Data: The report includes short selling data for the excluded companies, indicating significant short selling activity and ratios for both CEA and TSINGTAO BREWERY.
Deadline for Free Ticket Changes and Refunds on CN-JP Routes Extended to October 24
Airline Ticket Policy Update: Air China, China Eastern Airlines, and China Southern Airlines have announced a new policy allowing free changes or refunds for tickets issued before January 26, 2026, for flights to, from, or transiting through Japan.
Initial Policy Scope: The free change and refund policy was initially limited to flights scheduled before March 28, 2026, but has now been expanded to include a broader range of tickets.
China Eastern Airlines Partners with Alibaba's Qianwen and Fliggy for AI Collaboration
Stock Performance: CHINA EAST AIR's stock has decreased by 1.911%, with a short selling amount of $8.62 million and a ratio of 4.734%.
AI Collaboration: The airline has partnered with Alibaba's Qianwen and Fliggy to offer exclusive discounts for users purchasing tickets through the Qianwen app, labeled as "Qianwen Exclusive Price".
Future Plans: CHINA EAST AIR intends to enhance its collaboration with Alibaba to expand its "Air Ticket+" offerings and lifestyle services, aiming for more interactive customer experiences.
Market Information: The stock quote for CHINA EAST AIR is delayed by at least 15 minutes, with short selling data reported as of February 10, 2026.
M Stanley Bullish on Recovery for Three Major Chinese Airlines, Raises Price Targets
Airline Industry Outlook: Morgan Stanley predicts a multi-year cyclical improvement in the airline industry, gaining momentum in 2026-2027 due to increased demand, despite low investor confidence.
Target Price Increases: The broker raised target prices for the airline sector by an average of 42% and upgraded the A-shares of three major airlines to Overweight.
Passenger Load Factor Improvement: An estimated annual improvement of 1-2 percentage points in the passenger load factor (PLF) suggests stronger pricing power for airlines.
Optimistic Profit Margin Potential: Morgan Stanley maintains an optimistic view on the supply-driven upcycle for Chinese airlines, indicating potential upside for profit margins if pricing exceeds expectations.
Midday Update: HSI Ends at 26,724, Down 109 Points; HSTI at 5,347, Down 119 Points; TENCENT Falls Over 3%; XINYI GLASS, TECHTRONIC IND, WHARF REIC, YANKUANG ENERGY, and CHINA EAST AIR Reach New Highs
Market Performance: The HSI dropped 109 points (0.4%) to 26,724, while the HSTI fell 119 points (2.2%) to 5,347, and the HSCEI decreased by 48 points (0.5%) to 9,004.
Active Heavyweights: Major stocks like TENCENT, XIAOMI, and MEITUAN saw declines, with TENCENT down 3.4% and XIAOMI down 2.6%, while BABA fell 0.9%.
Notable Movers: XINYI GLASS and CHINA SHENHUA experienced significant gains, with XINYI GLASS up 6.2% and CHINA SHENHUA up 5.4%, while TRIP.COM-S dropped 6.1%.
Short Selling Trends: High short selling ratios were observed in several stocks, including XIAOMI (20.155%) and MEITUAN (17.261%), indicating increased bearish sentiment among investors.
CHINA EAST AIR Anticipates Net Loss for Shareholders Between Approximately RMB 1.3 Billion and RMB 1.8 Billion Last Year
Profit Forecast: CHINA EAST AIR (00670.HK) anticipates a total profit of approximately RMB200-300 million for the year 2025, in line with the China Accounting Standards for Business Enterprises.
Stock Performance: The company's stock has seen an increase of +0.090 (+1.661%).
Short Selling Activity: There is a reported short selling amount of $28.66 million.
Short Selling Ratio: The short selling ratio stands at 26.187%.
AH Smart Index Removes CEA/TSINGTAO BREWERY and Adds SANY HEAVY INDUSTRIES/SERES
Index Review Announcement: The China Securities Index Company and Hang Seng Indexes Company released the half-yearly review results for the Hang Seng CSI Shanghai-Hong Kong AH Smart Index, which includes the largest 50 AH companies under the Shanghai-Hong Kong Stock Connect programme.
Constituent Changes: The index maintains 50 constituent companies, with SANY HEAVY INDUSTRIES and SERES being newly included, while CEA and TSINGTAO BREWERY were excluded.
Future Share Class Determination: The share classes of the companies included in the index will be determined in March 2026, aligning with the monthly share class switching exercise.
Market Data: The report includes short selling data for the excluded companies, indicating significant short selling activity and ratios for both CEA and TSINGTAO BREWERY.
Deadline for Free Ticket Changes and Refunds on CN-JP Routes Extended to October 24
Airline Ticket Policy Update: Air China, China Eastern Airlines, and China Southern Airlines have announced a new policy allowing free changes or refunds for tickets issued before January 26, 2026, for flights to, from, or transiting through Japan.
Initial Policy Scope: The free change and refund policy was initially limited to flights scheduled before March 28, 2026, but has now been expanded to include a broader range of tickets.
