Aviation stocks bucked the market trend, with CHINA EAST AIR (00670) rising 1.92% to HK$4.78, CHINA SOUTH AIR (01055) gaining 1.16% to HK$5.25, and AIR CHINA (00753) up 0.94% to HK$6.43 by press time.

The onshore and offshore yuan strengthened against the U.S. dollar on December 16, with the offshore rate breaking through 7.04 to hit 7.03725 intraday—its highest level since October 4, 2024.

Notably, the Big Three airlines maintained robust load factors during the off-season. CHINA EAST AIR reported an 87.37% November load factor, up 3.04 percentage points year-over-year, while CHINA SOUTH AIR recorded 86.29%, a 1.36-point increase. AIR CHINA's average load factor rose 4 points to 83.3%.

Huatai Securities noted that while off-season data may lack short-term catalysts, the sector's long-term supply growth is expected to remain subdued, potentially driving fare hikes as demand recovers. Lower oil prices and a favorable USD/CNY exchange rate could further ease cost pressures, boosting profitability. The firm recommends prioritizing the state-owned Big Three (A+H shares) for their high win-rate and upside potential, followed by other private carriers.