HK Stock Market Move | BOC AVIATION (02588) rises over 5% as capital giants increase their bets on the aircraft leasing market; the company is Asia's largest aircraft leasing company.

BOC AVIATION (02588) rose over 5% in late trading. As of press time, it was up 4.99% at HK$79.9, with a turnover of HK$180 million. On the news front, on November 2, Avolon, an aircraft leasing company under Bohai Leasing, announced the establishment of an aircraft leasing partnership with US infrastructure investment institution ISQ and an investment entity under the Abu Dhabi Investment Authority. The new platform will initially purchase 22 aircraft with attached leases from Avolon, with an asset value of approximately US$1.398 billion. It is understood that more and more large global investment institutions have recently begun to turn their attention to the aircraft leasing business. BofA Securities issued a research report stating that it has initiated coverage on BOC AVIATION with a "Buy" rating and a target price of HK$80, based on 0.9x the expected 2027 book value per share, implying a potential total return of about 17% including dividends. As Asia's largest aircraft leasing company, BOC AVIATION benefits from the structural resilience of global air travel demand and tight aircraft supply; an aging fleet, coupled with continued constraints on OEM and engine supply, should support lease rates and second-hand aircraft values remaining at elevated levels for a longer period.