0540 GMT - Chinese airline stocks now offer a more balanced risk-reward profile after their share prices fell sharply, says DBS Group Research's Jason Sum in a note. The Chinese flag carriers have significantly underperformed peers, falling around 40% since the Middle East conflict began, the analyst says. While elevated jet-fuel prices could weigh more on Chinese airlines due to limited fuel hedging, the share selloff has largely priced in much of the near-term pessimism, with valuations appearing more reasonable, he adds. DBS raises its ratings on the Hong Kong stocks of China Eastern Airlines, Air China and China Southern Airlines to hold from sell. (megan.cheah@wsj.com)
(END) Dow Jones Newswires
June 11, 2026 01:40 ET (05:40 GMT)
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