1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - The freight rates in December are continuously being adjusted, and attention should be paid to the quotes in the second half of the month. The settlement price of the December contract is the arithmetic average of the three - phase SCFIS on December 15th, 22nd, and 29th. The freight rate center in the first half of December has been revised down to around $2,100 - 2,200 per FEU, and the SCFIS on December 15th may be between 1,600 - 1,650 points. MSC has announced a price increase to $3,500 per FEU in the second half of December [3]. - There may be a large expected difference in the February 2026 contract. The delivery and settlement time of the February contract has been determined. The delivery and settlement price of the EC2602 contract is the arithmetic average of the three - phase prices on January 26th, February 2nd, and February 9th, 2026. Whether the time for shipping companies to sign contracts and support prices will be postponed is uncertain. If the high - price situation occurs in January 2026, the February contract may be at par with the December contract [4][5]. - The far - month contracts face the pressure of the Suez Canal's resumption of navigation. If the Suez Canal resumes navigation in 2026, it means an increase in effective capacity supply and the risk of further depressing freight rates [5]. - The strategy suggests that the December contract and the February contract will fluctuate, and there is no arbitrage opportunity for now [7]. 3. Summary According to the Directory I. Futures Prices - As of December 2, 2025, the total open interest of all contracts of the container shipping index (European line) futures is 68,825 lots, and the daily trading volume is 32,303 lots. The closing prices of different contracts are as follows: EC2602 is 1,492.50, EC2604 is 1,078.00, EC2606 is 1,237.00, EC2608 is 1,357.20, EC2610 is 1,033.20, and EC2512 is 1,636.70 [6]. II. Spot Prices - On November 28th, the SCFI (Shanghai - Europe route) price was $1,404 per TEU, the SCFI (Shanghai - West Coast of the United States) price was $1,632 per FEU, and the SCFI (Shanghai - East Coast of the United States) price was $2,428 per FEU. On December 1st, the SCFIS (Shanghai - Europe) was 1,483.65 points, and the SCFIS (Shanghai - West Coast of the United States) was 948.77 points [6]. III. Container Ship Capacity Supply - In December, the monthly average weekly capacity is 303,900 TEU, and the capacities in weeks 50, 51, 52, and 53 are 326,300, 337,100, 258,900, and 318,800 TEU respectively. In January, the monthly average weekly capacity is 332,400 TEU, and the capacities in weeks 2, 3, 4, and 5 are 353,300, 337,200, 319,500, and 320,000 TEU respectively. There are 4 blank sailings in December (1 by the OA Alliance and 3 by the MSC/PA Alliance), and 4 TBNs in January, all from the OA Alliance. Maersk added a new sailing ship, MAERSK EINDHOVEN (13,092 TEU), in week 51 [3]. - 2025 is still a big year for container ship deliveries. As of now in 2025, 243 container ships have been delivered, with a total capacity of 1.985 million TEU. As of November 29, 2025, 74 ships with a capacity of 12,000 - 16,999 TEU have been delivered, with a total capacity of 1.1185 million TEU; 12 ships with a capacity of over 17,000 TEU have been delivered, with a total capacity of 253,800 TEU [6]. IV. Supply Chain - Maersk has issued an update on the Red Sea/Aden Gulf. Due to the continuous turmoil in the Red Sea, A.P. Moller - Maersk and Hapag - Lloyd launched the Cape of Good Hope network when the Gemini cooperation started in February 2025. There is no specific time to change the east - west route of Gemini to pass through the Red Sea for now [2]. V. Demand and European Economy No information provided.

Core Insights - The "Shipping Zhejiang" initiative aims to reduce logistics costs and promote high-quality development of inland shipping, with significant projects signed to adjust transportation structure from road to water [1][2] Group 1: Strategic Goals and Plans - The year 2025 marks the beginning of the "Shipping Zhejiang" construction, with a comprehensive plan for the inland waterway network, including 1,400 kilometers of secondary waterways [1] - The initiative includes the release of the 2.0 version of the technical guidelines for high-grade inland waterways, focusing on land-saving innovations [1][3] - Zhejiang has set ambitious targets of "1 billion tons transferred to water" and "fourfold increase" in shipping capacity [3] Group 2: Current Achievements and Statistics - In the first ten months of the year, Zhejiang's water transport investment reached 33.82 billion yuan, a year-on-year increase of 16.1% [3] - The inland ports achieved a cargo throughput of 360 million tons, up 9.3% year-on-year, and container throughput reached 1.93 million TEUs, increasing by 14% [3] - The number of inland container shipping routes has expanded to 84, effectively doubling the hinterland coverage [3] Group 3: Economic and Environmental Benefits - Inland water transport costs are significantly lower, at only 1/7 of road transport and 1/3 of rail transport, providing substantial cost advantages for exports [2] - Water transport has a much lower carbon emission footprint, with emissions being 1/6 of road transport and 2/3 of rail transport, contributing to carbon reduction efforts [2] - A single third-level waterway can accommodate 1,000-ton vessels, equivalent to the capacity of four highways, which can reduce heavy truck traffic by 30%, alleviating road congestion [2]

Group 1 - The 2025 Pudong Shipping Week will showcase significant shipping industry cooperation achievements, including the launch of a shipping industry fund and the latest green technologies, services, and products [1] - The "China's Characteristic Shipping Center Development Report" will be officially released, which constructs a unique evaluation index system for shipping centers in China and proposes innovative development paths based on the advantages of major port cities [1] Group 2 - Li Zheng, a member of the municipal standing committee and secretary of the Pudong New Area Committee, attended the event [2]

Report Summary 1. Investment Rating - The report suggests a wait - and - see approach, with a preference for light - position participation or waiting for the current situation [2][4]. 2. Core View - Pessimistic sentiment has been repaired. The upward movement of SCFI has driven the market up, but there is no obvious fluctuation in freight rates. The tariff issue has a marginal effect, and the current core is the direction of spot freight rates. The main contract has shown a seasonal rebound [2][4]. 3. Summary by Content SCFIS and NCFI Freight Index - On December 1st, the Shanghai Export Container Settlement Freight Index SCFIS (European route) was 1483.65 points, down 9.5% from the previous period; SCFIS (US West route) was 948.77 points, down 14.4% from the previous period. The Shanghai Export Container Freight Index SCFI announced a price of 1403.13 points, up 9.57 points from the previous period; SCFI European line price was 1404 USD/TEU, up 2.71% from the previous period; SCFI US West route was 1632 USD/FEU, down 0.79% from the previous period [3]. - On November 28th, the Ningbo Export Container Freight Index NCFI (composite index) was 972.63 points, up 2.77% from the previous period; NCFI (European route) was 1024.64 points, up 7.67% from the previous period; NCFI (US West route) was 881.66 points, down 7.77% from the previous period. The China Export Container Freight Index CCFI (composite index) was 1121.80 points, down 0.1% from the previous period; CCFI (European route) was 1449.34 points, up 1.1% from the previous period; CCFI (US West route) was 841.86 points, down 1.1% from the previous period [3]. Economic Data - In the eurozone in October, the manufacturing PMI preliminary value was 45.9 (expected 45.1, previous value 45), the service PMI preliminary value was 51.2 (expected 51.5, previous value 51.4), and the composite PMI preliminary value was 49.7 (expected 49.7, previous value 49.6). The Sentix investor confidence index's previous value was - 9.2, and the forecast value was - 8.5 [3]. - In the US in October, the S&P Global service PMI preliminary value was 55.2 (expected 53.5, previous value 54.2), the manufacturing PMI preliminary value was 52.2 (expected 52), and the composite PMI preliminary value was 54.8 (expected 53.1, previous value 53.9) [4]. - In China in October, the manufacturing PMI was 49.0%, down 0.8 percentage points from the previous month, and the composite PMI output index was 50.0%, down 0.6 percentage points from the previous month [3]. Market and Strategy - On December 1st, the main contract 2602 closed at 1492.5, up 3.02%, with a trading volume of 26,600 lots and an open interest of 38,200 lots, a decrease of 1867 lots from the previous day [4]. - Short - term strategy: For risk - preferring investors, it is recommended to lightly test long positions in the EC2602 contract in the 1550 - 1600 range. Do not add positions if the market plunges, and do not hold losing positions. Set stop - losses [5]. - Arbitrage strategy: In the context of international turmoil, each contract still follows the seasonal logic with large fluctuations. It is recommended to wait and see or lightly test positions [5]. - Long - term strategy: It is recommended to take profits when each contract rises and wait for the callback to stabilize before judging the subsequent direction [5]. - The daily limit and daily decline limit for contracts 2508 - 2606 are adjusted to 18%, the company's margin for contracts 2508 - 2606 is adjusted to 28%, and the intraday opening limit for all contracts 2508 - 2606 is 100 lots [5].

Market Overview - The Hong Kong stock market opened higher on December 2, with the Hang Seng Index rising by 0.6% to 26,188.55 points, the Hang Seng Tech Index increasing by 0.76% to 5,687.49 points, and the National Enterprises Index up by 0.56% to 9,224.1 points. The Red Chip Index slightly decreased by 0.02% to 4,244.75 points [1] Automotive Industry - BYD Company (01211.HK) produced approximately 4.1176 million new energy vehicles in the first 11 months, representing a year-on-year increase of 7.29%. The sales volume reached about 4.182 million, up by 11.3% year-on-year [2] - Geely Automobile (00175.HK) reported total vehicle sales of 2.7878 million units in the first 11 months, a significant year-on-year increase of 42%. In November alone, sales were 310,400 units, reflecting a growth of approximately 24% compared to the same month last year [2] - NIO Inc. (09866.HK) delivered 277,900 vehicles in the first 11 months, marking a year-on-year increase of 45.6%. In November, deliveries reached 36,300 units, up by 76.3% year-on-year [2] - XPeng Motors (09868.HK) achieved cumulative deliveries of 391,900 vehicles in the first 11 months, a remarkable year-on-year growth of 156%. November deliveries were 36,700 units, showing a 19% increase compared to the same month last year [2] - Li Auto (02015.HK) delivered 33,181 new vehicles in November [3] Infrastructure and Transportation - Shenzhen Expressway Company (00548.HK) reported toll revenue for October from various projects, including RMB 10.688 million from Meiguan Expressway and RMB 89.067 million from the Outer Ring project [3] Financial Sector - Agricultural Bank of China (01288.HK) successfully issued non-capital bonds with a total loss-absorbing capacity of RMB 20 billion [4] Pharmaceutical Sector - China Biologic Products (01177.HK) completed the first patient enrollment in Phase I clinical trials for its self-developed innovative drug TRD208 in China [4] - Valiant Pharmaceuticals (09887.HK) received IND approval from NMPA for LBL-047 [6] - HeYue-B (02256.HK) obtained FDA approval for its oral small molecule KRAS G12D inhibitor ABSK141 [7] - Junshi Biosciences (02696.HK) received NMPA approval for its HLX37 in a Phase I clinical trial for patients with advanced/metastatic solid tumors [7] Investment Insights - Huatai Securities indicated that the market is nearing a "bad news fully priced" state, with core risk points such as US-China trade friction and the impact of the "takeout war" on internet sector profitability being sufficiently released. The current market level has limited downside potential, suggesting opportunities for left-side layout [10] - Huachuang Securities projected that the shipping industry investment logic will continue to focus on supply-demand gaps, with low supply growth and potential marginal changes in demand. The tanker sector is expected to benefit from global crude oil production cycles and trade structure improvements [11] - CITIC Securities highlighted a stable outlook for heavy truck domestic sales and continued export growth, emphasizing the importance of domestic subsidy continuity and opportunities for leading companies exceeding expectations [11]

Core Insights - The shipping and port stocks in Hong Kong experienced a general increase, with notable gains in companies like COSCO Shipping Energy and COSCO Shipping Ports, driven by a significant rise in freight rates and improved market sentiment [1][2] Industry Overview - The global dry bulk market is showing signs of rapid warming, with key indices reaching new highs, contrasting with the previous year's weak performance [1][3] - The Baltic Dry Index (BDI) has seen a continuous rise, reaching 2,560 points, the highest level since December 2023, indicating strong market momentum [1][3] - The increase in freight rates is attributed to supply-demand imbalances, geopolitical factors, and rising transportation costs due to longer shipping routes [2][3] Market Dynamics - The Asia-Europe shipping routes have experienced a price surge, influenced by tariff changes and supply chain shifts, leading to higher freight rates [2][3] - The upcoming holiday season, including Christmas and Black Friday, is expected to boost freight demand in Europe, further supporting shipping rates [3] Company Insights - COSCO Shipping Energy (01138) focuses on oil and LNG transportation, operating a significant fleet and providing comprehensive logistics services [4] - Pacific Basin Shipping (02343) specializes in dry bulk shipping, transporting various commodities and maintaining a strong market presence [5] - COSCO Shipping Holdings (01919) is expanding its operations in emerging markets and enhancing its service network to meet regional demand [5] - Orient Overseas International (00316) offers comprehensive container shipping and logistics services, covering major global trade routes [5]

Core Insights - The shipping market is experiencing a significant price increase, driven by a recovery in European demand and supply chain constraints, which has shifted market sentiment from oversupply to improved profitability expectations [1][2] - The Baltic Dry Index (BDI) has reached its highest level since December 2023, indicating a robust dry bulk market, with various indices showing substantial gains [2] - The shipping industry is expected to see continued growth in 2025, with key indices reaching new highs and a favorable outlook for dry bulk shipping due to limited supply growth and increasing demand catalysts [1][3][4] Shipping Market Trends - The European shipping market is showing signs of recovery, with significant increases in freight rates, particularly on the Asia-Europe routes, as major shipping companies announce price hikes [2][3] - Geopolitical factors and climate change are causing rerouting of international shipping lanes, leading to increased transit times and fuel costs, further tightening supply [2] - The demand for shipping is being bolstered by rising oil production and exports, particularly from OPEC+, which has increased transportation needs [2] Future Outlook - Analysts predict that the shipping industry is at a turning point, with three main catalysts for demand: the production of iron ore from the West Simandou project, potential interest rate cuts by the Federal Reserve, and ongoing infrastructure needs related to post-conflict reconstruction [3][4] - The oil tanker segment is expected to benefit from a sustainable increase in market conditions due to global oil production cycles and trade structure improvements [4] - The container shipping market remains tight, with high demand and limited supply, suggesting continued strong performance in the near term [4] Key Companies - COSCO Shipping Energy Transportation Co., Ltd. (中远海能) focuses on oil and LNG transportation, operating a significant fleet and providing comprehensive logistics services [5] - Pacific Basin Shipping Limited (太平洋航运) specializes in dry bulk shipping, transporting various commodities and maintaining a strong operational presence [6] - COSCO Shipping Holdings Co., Ltd. (中远海控) is expanding its market reach by developing new routes and enhancing its service offerings in emerging markets [6] - Orient Overseas International Ltd. (东方海外国际) is a leading provider of container shipping and logistics services, with a modern fleet covering major trade routes [6]

Group 1: Market Overview - The Hong Kong port and shipping stocks experienced a general increase, with China COSCO Shipping Energy Transportation Co., Ltd. rising over 4% and China COSCO Shipping Ports up over 3% [1] - The European freight rates surged significantly, interpreted as a sign of recovering demand in the European market or supply chain tightness, altering the previously pessimistic view of the shipping industry [1][2] - The Baltic Dry Index (BDI) rose for 12 consecutive days, reaching 2,560 points, the highest level since December 2023 [2] Group 2: Demand and Supply Dynamics - The increase in shipping prices is primarily driven by route restructuring, tight capacity, and supply-demand imbalances, influenced by geopolitical factors and climate change [2] - The demand for shipping is bolstered by the global oil production cycle, with OPEC+ increasing production, leading to a significant rise in oil shipping volumes [2][3] - The shipping market is expected to see a turning point in 2024, with limited supply growth and several demand catalysts, including the production of iron ore and infrastructure projects [3][4] Group 3: Company Insights - China COSCO Shipping Energy focuses on oil and LNG transportation, operating a leading fleet in the global energy supply chain [5] - Pacific Basin Shipping is a major operator of modern handy and super handy bulk carriers, specializing in the transportation of bulk commodities [6] - China COSCO Shipping Holdings is expanding its routes to meet regional market demands, particularly in Southeast Asia and Latin America [6]

Core Insights - The stock prices of port and shipping companies in A-shares have surged due to increased international shipping rates and a significant rise in container shipping index futures [1] - The rise in shipping market prices is attributed to route restructuring, tight capacity, and supply-demand imbalances [1] - Geopolitical factors and climate change have led to longer shipping routes around the Cape of Good Hope, resulting in increased travel time and fuel costs [1] - The global oil production increase has boosted transportation demand, with OPEC+ implementing multiple production hikes this year, leading to a notable rise in maritime oil exports [1] Company Performance - In 2023, 14 shipping companies in China reported net profit growth in the first three quarters, with some exceeding their total net profit from the previous year [1] - An Tong Holdings (600179), Jin Jiang Shipping (601083), and Liao Port Co. (601880) showed significant profit growth, with increases of 311.77%, 64.76%, and 37.51% respectively [1]

Core Viewpoint - After three consecutive weeks of decline, China's export container shipping market has recently seen a slight increase of 0.7% in freight rates, with varying trends across different routes [1] Group 1: Freight Rate Trends - The freight rates on different routes have shown a mixed performance, with significant rebounds on the South America route and a recovery on the East America route, while the West America route continues to decline [1] - Mediterranean Shipping Company (MSC) announced a price increase for the Europe-Asia route, with a uniform freight rate of $2,975 per TEU for the first half of December, rising to $3,375 per TEU in the second half, marking a $400 increase for 20-foot containers [2] - As of November 28, the market freight rate from Shanghai to Mediterranean ports was $2,232 per TEU, reflecting an 8.6% increase [2] Group 2: Market Dynamics and Seasonal Factors - The end of November typically marks the beginning of a concentrated shipping period in Europe and the Mediterranean, driven by contract fulfillments and pre-arranged shipments for the Spring Festival [5] - The shipping volume on European routes is currently insufficient to support higher rates, leading some shipowners to offer discounted rates [5] - An increase in booking volumes is expected from late December, particularly on the Mediterranean route, due to previous capacity shortages and cargo backlogs [6] Group 3: Suez Canal and Capacity Concerns - Discussions are ongoing regarding the resumption of services through the Suez Canal, which could lead to an oversupply of capacity and downward pressure on freight rates [7] - The Suez Canal is expected to fully restore shipping volumes and revenue by 2026, with strategic agreements already in place between the Suez Canal Authority and major shipping companies [7][9] - The potential return to Suez Canal routes could result in an oversupply of approximately 1.5 million TEU, necessitating careful capacity management by shipping companies [9]