Daily Investment Strategy
Daily focus：China Eastern Airlines（670）
In March 2025, both China Eastern Airlines and China Southern Airlines showed growth in passenger operations, but China Eastern's increase was more significant. China Eastern's passenger capacity input (measured by available seat kilometers) increased by 6.68% year-on-year, passenger turnover increased by 10.51% year-on-year, and the passenger load factor reached 84.16%, an increase of 2.92 percentage points year-on-year. In comparison, China Southern's passenger capacity input increased by 3.07% year-on-year, passenger turnover increased by 6.08% year-on-year, and the passenger load factor was 84.74%, an increase of 2.40 percentage points year-on-year. However, in terms of fleet size, China Southern leads with 932 aircraft compared to China Eastern's 816 aircraft.
US restricts H20 exports to China
Nvidia's H20 chips face a major blow from new U.S. export restrictions. The U.S. government requires Nvidia to obtain a license to export H20 chips to China. The policy change resulted in Nvidia expecting to incur up to $5.5 billion in charges in the first quarter from inventory, purchase commitments and related reserves, which may include the failure to deliver some of the $16 billion in orders for Nvidia's H20 chips placed by Chinese technology companies such as Tencent, Alibaba and ByteDance in the first quarter. The incident highlights the impact of U.S.-China trade tensions on technology companies and could increase competitive pressure on Nvidia in the Chinese market. Nvidia's stock fell about 6% following the announcement.
On Tuesday, the Southbound Trading of the Hong Kong Stock Connect saw a net inflow of HKD 7.2 billion. The largest net inflow was into the Tracker Fund of Hong Kong (2800), amounting to HKD 790 million, followed by Tencent Holdings (700). The largest net outflow was from Semiconductor Manufacturing International Corporation (SMIC) (981), amounting to HKD 790 million, followed by Xiaomi Corporation (1810).
Cheung Cho Shing, Joseph is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/ACQ030/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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