China operates the world's largest shipping fleet through COSCO. HKEX-listed shipping stocks are tracked by the Baltic Dry Index (BDI) and SCFI container freight index.
COSCO Shipping Holdings (1919.HK) is one of the world's largest shipping conglomerates, operating container ships, tankers, dry bulk vessels and ports. It is the dominant Chinese shipping stock and is listed on both HKEX and the Shanghai Stock Exchange.
COSCO's diversified fleet means multiple signals apply simultaneously: BDI for dry bulk, SCFI for containers, and VLCC rates for crude tankers. The Hormuz crisis significantly boosted COSCO's tanker division — VLCC rates peaked at $120k/day before normalising as the strait reopened.
The Baltic Dry Index at 2095 pts represents the benchmark for dry bulk freight rates. COSCO and Pacific Basin outperform most strongly when BDI is rising from below 1,000. The current mid-cycle level suggests neither urgency to buy nor urgency to sell.
The Shanghai Containerised Freight Index (SCFI) at 1850 is recovering as Hormuz normalises and Red Sea rerouting partly reverses. Container rates are still elevated vs pre-2020 history, creating a structural tailwind for COSCO's container segment.
For informational purposes only. Not financial advice. See disclaimer.