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.

Air China Stake Reduction: Air China has reduced its stake in Cathay Pacific by 1.61%, bringing its ownership down to 27.11%.

Cathay Pacific's Response: Ronald Lam, CEO of Cathay Pacific, views Air China's stake reduction as a strategic move and believes they will remain a long-term strategic shareholder.

Air China Short Selling: Air China (00753.HK) has reported short selling of $25.85 million with a ratio of 11.088%, indicating significant market activity.

Cathay Pacific Share Placement: Cathay Pacific Airways (00293.HK) will complete the placement of 108 million shares before the Extraordinary General Meeting (EGM), with short selling at $8.55 million and a ratio of 6.929%.

Shareholding Changes: Following the completion of a share disposal and an off-market buyback by Cathay Pacific, Swire Pacific's shareholding will rise from approximately 43.09% to 47.65%, while Air China's shareholding will increase from about 27.11% to 29.98%.

MGO Waiver Application: Swire Pacific has submitted an application for a Mandatory General Offer (MGO) Waiver to the Executive, reflecting strategic moves in shareholding adjustments.

Share Sale Announcement: Air China’s subsidiary Easerich sold 108 million shares of Cathay Pacific at HKD12.22 per share, totaling approximately HKD1.32 billion, which is a 6.6% discount from the previous closing price.

Impact on Shareholding: Following the sale, Air China's shareholding in Cathay Pacific decreased from 28.72% to 27.11%, but the company remains a significant strategic shareholder and optimistic about Cathay Pacific's future.

Profit Estimation: The estimated profit before tax from the share sale is around RMB182 million, excluding transaction fees and other costs, pending finalization in audited financial statements.

Lock-Up Agreement: Easerich and Air China have agreed to a 180-day lock-up period during which they will not sell or transfer any Cathay Pacific shares, except for intra-group transfers.