HK Stock Market Move | Pacific Shipping (02343) rose more than 4% in the afternoon, interest rate cuts and the coordinated movement of large and small ships may continue to drive industry recovery.

The Pacific Shipping (02343) rose more than 4% in the afternoon, up 4.43% as of the press release, at HK$3.3, with a turnover of HK$49.3803 million. On the news front, the Simandou iron ore mine in Guinea has officially started production. Industrial released a research report stating that the production of the Simandou iron ore mine in Guinea and the continuous growth of bauxite exports are expected to gradually increase the shipping distance of bulk cargo, leading to an increase in demand for shipping capacity. If the conflicts in Russia and Ukraine and Israel and Palestine end, the post-war reconstruction is also expected to increase the demand for dry bulk shipping. Changjiang released a research report pointing out that as a leader in small bulk shipping, The Pacific Shipping is approaching a turning point in the industry, with the company expected to show significant performance potential. Huachuang Securities also noted that the easing cycle is expected to drive growth in physical demand. Additionally, the Simandou iron ore project will bring significant turnover to the large ship market, and due to the linkage effect between large and small ship markets, the opening of the large ship market in the future is also expected to drive the small ship market.