HSBC's Parash Jain on Transport Stocks Amid Golden Week

The transcript discusses the valuation and capacity issues of Cathay Pacific, the recovery of domestic and international travel markets, and the trends affecting airfares. It also covers the shipping industry's current state, including container shipping rates and future profitability predictions, with a focus on the impact of China's stimulus on the bulk industry.

What is the price target set for Cathay Pacific, and what factors contribute to this valuation?

• $15.00, based on fuel prices

• $11.00, influenced by international reopening

• $9.00, driven by domestic travel

• $13.00, due to cargo demand

How is China's domestic travel expected to recover once COVID-19 cases are under control?

• It will exceed 2019 levels

• It will remain below 2019 levels

• It will match 2019 levels

• It will decline further

Which airline among the big three is considered the safest investment based on risk-reward analysis?

• China Eastern

• Cathay Pacific

• China Southern

• Air China

What is the primary reason for the high cost of airfares despite the reopening of international markets?

• Increased demand and limited supply

• Decreased fuel prices

• Reduced labor costs

• Government regulations

What is the expected trend for container shipping rates in the near future?

• They will increase significantly

• They will stabilize at current levels

• They will fluctuate unpredictably

• They will decline to 2019 levels

Which sub-sector of the shipping industry is preferred due to its current market position?

• Cruise liners

• Container ships

• Tankers

• Bulk carriers

What strategic shift is Equimolar Musk attempting in its business model?

• Reducing investments in logistics

• Transitioning to a less cyclical model

• Focusing solely on container shipping

• Expanding into passenger transport