BOC Aviation (02588) surged nearly 5% in the afternoon session, reaching a high of HK$78.85 to set a new record high since its listing. As of the time of writing, the stock was up 4.39% at HK$78.55, with a turnover of HK$88.75 million.

Ping An Securities Hong Kong released a research report stating that the current business cycle for the aircraft leasing industry remains on an upward trend. Due to factors such as tight global supply chains for new aircraft, a shortage of skilled workers, and constrained raw material supplies, aircraft manufacturers continue to face production limitations, while demand for aircraft remains robust. As the supply-demand balance for aircraft continues to tighten, aircraft values and lease rates are persistently rising. Leading aircraft lessors with relatively stable aircraft deliveries are poised to benefit from this upswing in the aircraft leasing cycle.

Western Securities indicated that, as a leading aircraft lessor, the company is positioned for dual benefits from both the aviation industry's upswing and the Federal Reserve's interest rate cutting cycle. On one hand, BOC Aviation has a fleet of 483 owned and managed aircraft, ranking fifth globally among aircraft leasing companies, and will continue to benefit from revenue growth driven by its global airline customer base during the industry upswing. On the other hand, as the Federal Reserve's rate cuts progress, the company's USD-denominated funding costs are expected to decline, potentially widening its interest margin and creating a dual-beta effect.