Shipping stocks collectively surged in afternoon trading. As of press time, SITC (01308) rose 6.85% to HK$30.58, PACIFIC BASIN (02343) gained 4.67% to HK$2.69, COSCO SHIP HOLD (01919) climbed 2.82% to HK$13.87, and OOIL (00316) advanced 1.86% to HK$137.

The rally follows a meeting between Chinese and U.S. leaders on October 30, where both sides discussed bilateral trade relations and agreed to enhance cooperation in economic and trade fields. Additionally, trade negotiations between the two nations yielded positive outcomes, including the U.S. canceling a 10% tariff on fentanyl-related products and extending a one-year suspension on 24% retaliatory tariffs.

The transportation market has been buoyed by these developments, with active bookings and rising freight rates. Huayuan Securities noted that these measures could ease bilateral trade tensions, support global economic stability and growth, and benefit the shipping sector. The firm anticipates a swift recovery in maritime trade between China and the U.S., particularly in container exports from China and imports of U.S. agricultural products, crude oil, and natural gas.