Yesterday, the Hang Seng Index plummeted by 1.58%, hitting a new low, while the shipping sector saw a significant rise. Following a涨停 (price limit increase) the day before, COSCO Shipping Holdings surged again by 5.98% yesterday, transforming the 'Sea Dog' into the 'Sea King'.
In terms of news, a new variant of the coronavirus was recently discovered in South Africa and officially named 'Omicron' by the World Health Organization. Several European countries have already identified cases of infection with the Omicron strain, causing global alarm as the situation remains highly tense. According to preliminary reports from local health officials in South Africa, approximately 90% of the roughly 1,100 new cases reported in Gauteng Province on the 24th were attributed to this new variant, far exceeding levels seen with previous strains like Delta during the same period.
Proportion of Genotypes of COVID-19 Strains in South Africa
Data Source: NICD, Guosheng Securities Research Institute
With the arrival of the Omicron strain, multiple shipping companies in Southeast Asia, facing rising freight rates and a shortage of capacity, have begun imposing additional charges such as congestion surcharges, peak season surcharges, and container shortages fees. Additionally, it has been reported that U.S.-bound shipping routes have also experienced widespread cancellations due to tight cabin availability.
So, will COSCO Shipping Holdings' good days really return?
In 2021, Kweichow Maotai's net profit for the first three quarters reached 39.57 billion yuan, CATL’s net profit was 9.145 billion yuan, and BYD’s net profit was 3.297 billion yuan. Can you guess what COSCO Shipping Holdings’ net profit was for the first three quarters? 67.59 billion yuan—yes, you read that correctly. COSCO Shipping Holdings’ net profit for the first three quarters of this year was 67.59 billion yuan. The 'Sea King' truly lives up to its name. ...