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.

Flight Cancellations: In January 2026, approximately 2,195 flights between China and Japan were canceled, resulting in a cancellation rate of 40.4%, with 46 routes having all flights canceled from December 23, 2025, to January 5, 2026.

Airline Responses: Major airlines such as AIR CHINA, CHINA EAST AIR, CHINA SOUTH AIR, SPRING AIRLINES, and JUNEYAO AIRLINES have implemented flight change policies in response to the cancellations, with a peak in ticket refunds expected until the end of December.

Stock Performance: Air China saw a slight increase of 0.431%, while China Eastern Airlines and China Southern Airlines experienced minor declines. COSCO Ship Energy had a notable rise of 4.249%.

Short Selling Data: Air China had a short selling ratio of 12.263%, with significant short selling observed in COSCO Ship Energy at 22.876%.

Analyst Ratings: Analysts maintain a "Buy" rating for Air China, China Eastern Airlines, and China Southern Airlines, with target price adjustments reflecting potential growth.

Market Outlook: Morgan Stanley is optimistic about the airline and tanker sectors for 2026, while being cautious regarding container shipping, indicating a mixed outlook for the industry.

Aviation Sector Outlook: Goldman Sachs is optimistic about aviation stocks, particularly AIR CHINA and CEA, anticipating further increases in ticket prices despite potential risks in Japan during the first half of 2026.

Container Shipping Concerns: The bank has adopted a cautious stance on container shipping due to a recovery in supply, which may compress profit margins, and the potential reopening of the Red Sea could release about 10% of effective capacity, impacting COSCO SHIP HOLD.

Crude Oil Tanker Projections: Goldman Sachs expects spot freight rates for crude oil tankers to rise in 2026, driven by China's prolonged crude oil reserve process, with COSCO SHIP ENGY likely to benefit from this trend.

Investment Ratings: The report includes various investment ratings and target prices for several companies, with a general recommendation to buy for most aviation and shipping stocks, while COSCO SHIP HOLD is rated neutral to sell.