Demand concerns over US tariffs might weigh on the general rate increases (GRIs) in the transpacific (TP) routes, while the US pause on reciprocal tariffs on non-Chinese imports for 90 days could drive businesses to front-load shipments, reversing the recent decline in orders, HSBC Global Research opined in its research report. Due to the US slapping over 100% tariffs on Chinese goods, however, shipments from China will continue to diminish.
In HSBC Global Research's opinion, intra-Asia trade can remain resilient, and SITC (01308.HK) +0.400 (+1.562%) Short selling $24.97M; Ratio 13.439% will be a major beneficiary. Amid mixed demand prospects, carriers are also reducing TP sailings to balance capacity. Consequently, freight rates have not experienced a nosedive. The broker reiterated that the outlook for 2H25 remains highly uncertain.
The broker recommended Buying SITC and COSCO SHIP ENGY (01138.HK) +0.520 (+8.215%) Short selling $27.39M; Ratio 3.844% , with target prices of $26 and $9.3. It gave COSCO SHIP HOLD (01919.HK) +0.720 (+5.381%) Short selling $125.33M; Ratio 12.726% a Hold rating with a target price of $10 and OOIL (00316.HK) +5.500 (+4.183%) Short selling $57.92M; Ratio 22.848% a Reduce rating with a target price of $90.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-13 16:25.)
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