Airlines Performance: Air China, China Southern Airlines, and China Eastern Airlines experienced declines in share prices, while BOC Aviation and Travelsky Tech saw slight increases, with most airlines rated as "Overweight."

Express Delivery Platforms: ZTO Express is rated "Overweight," while J&T Express and JD Logistics faced declines in share prices, both rated as "Equalweight."

Shipping Companies: COSCO Ship Energy showed a positive performance with an increase in share price and is rated "Overweight," while other companies like Pacific Basin and SITC had minor declines and are rated "Equalweight."

Market Insights: UBS anticipates continued favorable policies for the Chinese aviation industry, recommending a buy for Spring Airlines.

Morgan Stanley's Transportation Report: The report highlights that despite a soft macroeconomic outlook, the transportation market in mainland China and Hong Kong will face more opportunities than risks, focusing on supply chain constraints and market consolidation in various sectors.

Aviation Industry Ratings: Morgan Stanley has rated several airlines, including AIR CHINA, CHINA EAST AIR, CHINA SOUTH AIR, and SPRING AIRLINES, as Overweight with specific target prices, indicating a positive outlook for these stocks.

Shipping Stocks Outlook: The report expresses a bearish view on COSCO SHIP HOLD and OOIL, rating them as Underweight, while giving an Overweight rating to COSCO SHIP ENGY and MERCHANTS SHIPPING, suggesting a more favorable outlook for the latter.

Courier Industry Assessment: J&T EXPRESS-W is rated as Equalweight by Morgan Stanley, with expectations for market share expansion in its operating regions, reflecting a cautious but optimistic view on its growth potential.

Revenue Decline: OOIL reported a 17.2% year-over-year and 8.1% quarter-over-quarter decline in 4Q revenue, aligning with Morgan Stanley's expectations and reflecting ongoing downward pressure on shipping rates.

Future Projections: Morgan Stanley forecasts OOIL's earnings per share (EPS) for 2025-2027 to be USD2.06, USD1.23, and USD0.94, with annual revenue estimates of USD9.721 billion, USD9.567 billion, and USD9.869 billion.

Market Outlook: The broker anticipates that the downcycle in the shipping sector will continue until 2026, despite seasonal demand before the Lunar New Year.

Rating and Target Price: Morgan Stanley maintains an Underweight rating for OOIL, setting a target price of HKD97.

Market Performance: The Hang Seng Index (HSI) rose by 106 points (0.4%) to close at 25,540, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains, closing at 5,581 and 8,954 respectively, with a total market turnover of $193.39 billion.

Active Heavyweights: Notable stocks included Meituan, which increased by 2.7% to $100, and Alibaba, which rose by 1.5% to $153.2. In contrast, China Construction Bank saw a decline of 0.5% to $7.57.

Significant Movers: OOIL experienced a significant drop of 5.9% to $125.5, while WH Group and Haidilao saw increases of 5% and 3.4% respectively. Xinyi Solar fell by 3.2% to $3.02.

Noteworthy Stocks in HSMI & HSSI: Innogen surged by 19.2% to $38.32, and China Vanke rose by 13.2% to $3.78. Conversely, Guofuhee and Hao Tian International faced declines of 12.9% and 10.9% respectively.

Market Performance: The HSI fell 109 points (0.4%) to 25,325, with the HSCEI and HSTECH also declining by 0.5% and 0.7%, respectively, amid a total market turnover of HKD95.743 billion.

Tech Sector Movements: BABA-W and MEITUAN-W saw slight gains of 0.6% and 1.2%, while TENCENT, JD-SW, and KUAISHOU-W experienced declines of up to 1%.

Carmakers and Developers: BYD COMPANY and other carmakers like NIO-SW and XPENG-W dropped between 1.1% and 2.8%, while Chinese developer AGILE GROUP rebounded by 1.6% despite facing a winding-up petition.

Shipping and Commodities: The Baltic Dry Index fell, leading to significant losses for shipping companies like OOIL and PACIFIC BASIN, which dropped 4.9% and 9.5%, respectively.