Hong Kong Stock Alert | COMEC (00317) Surges Nearly 6% in Afternoon Session as Ministry of Transport Launches Investigation into Shipping, Shipbuilding and Related Industries

Stock News10-14

COMEC (00317) surged nearly 6% during afternoon trading. As of press time, the stock gained 4.72% to HK$15.75, with turnover reaching HK$80.2174 million.

On the news front, the Ministry of Transport, together with the Ministry of Industry and Information Technology and other departments, has launched an investigation into how China's shipping industry, shipbuilding sector, and related industrial and supply chains' security and development interests are affected or potentially affected by the US Section 301 investigation. The probe also examines whether relevant companies, organizations, or individuals have implemented, assisted, or supported discriminatory restrictive measures taken by the United States against China in the shipping industry, shipbuilding sector, and related industrial and supply chains, along with other related matters.

Notably, on October 10, the Ministry of Transport issued an "Announcement on Collecting Special Port Service Fees from US Vessels," which took effect on October 14, imposing special port service fees on US ships.

Shenwan Hongyuan Securities stated that China's countermeasures against the US present another historic opportunity for the shipping and vessel sector. Key developments to monitor include: if US-invested vessels manufactured in China are exempted, Chinese shipbuilding orders could experience explosive growth; if China and the US engage in negotiations and the US Section 301 investigation is simultaneously cancelled, it would benefit shipbuilding; and if China-US negotiations lead to Chinese purchases of US oil, transportation distances would be extended.

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