Aviation stocks in Hong Kong recorded broad-based gains. CHINA EAST AIR (00670) rose 5.42% to HK$6.03, CHINA SOUTH AIR (01055) climbed 3.9% to HK$6.40, AIR CHINA (00753) advanced 2.66% to HK$7.34, and CATHAY PAC AIR (00293) increased 1.11% to HK$13.70. The rally follows the offshore yuan strengthening beyond 6.85 against the U.S. dollar, reaching its highest level since April 14, 2023. Airlines typically carry significant foreign currency debt, predominantly denominated in U.S. dollars. A weaker dollar helps these carriers generate foreign exchange gains. Guosen Securities previously noted that both lower oil prices and a stronger yuan are favorable for airlines to improve their financial performance. Shenwan Hongyuan added that the aircraft manufacturing supply chain faces unprecedented constraints, leading to highly limited capacity. With passenger load factors already at historically high levels and a clear upward trend in international passenger traffic, the aviation sector is poised for a promising investment phase. Looking ahead, warmer weather is expected to boost travel in March. Following the extended Spring Festival period, various industries are pushing to meet first-quarter targets, which should support a rapid recovery in business travel. Additionally, an anticipated meeting between the leaders of China and the United States could lead to increased flight capacity on Sino-U.S. routes.