HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rises by over 8%, VLCC Middle East route rates soar to over $70,000 per day

COSCO Shipping Energy Transportation (01138) rose by more than 8%, reaching 6.81% at the time of publishing, at HK$18.2, with a turnover of HK$489 million. On the news front, the US and Iran signed a memorandum of understanding from June 17th to 19th, causing VLCC prices for the Middle East route to soar to over $700,000 per day. It is reported that after the temporary agreement between the US and Iran, Chinese and Indian refineries inquired with shipowners about transporting Iraqi crude oil at the end of June, receiving multiple offers ranging from WS650-750 (equivalent to $700,000-820,000 per day), which is about three times the price before the US-Iran conflict. China International Capital Corporation released a research report stating that the rules for passage through the Strait of Hormuz have shifted from an uncertain conflict situation to an initial declaration management phase. The market is reassessing passage routes, waiting times, and compliance costs, with shipowners adopting a wait-and-see strategy, leading to a temporary contraction in effective shipping capacity. It is necessary to monitor whether the implementation of the declaration management system in the Strait of Hormuz will stabilize and converge towards a normal path, as well as whether there will be a continuous increase in the pace of Iranian crude oil exports recovery.