China-Based Air Carriers Oppose U.S. Plans to Disallow Use of Russian Airspace

Inga Muller
16 Oct, 2025
Hong Kong

Stocks in China and Hong Kong wavered amid rapidly rising trade tensions between the U.S. and China. 

The Hang Seng Index declined 0.6%, and the mainland-focused CSI 300 index inched higher a fraction as investors reviewed the fast-changing trade backdrop between the U.S. and China. 

The U.S. Department of Transportation announced its plans to disallow Chinese airlines operating flights to the U.S. to pass through Russian airspace, angering China-based airlines. 

The use of the Russian airspace gives a cost advantage to Chinese airlines over the U.S. carriers, which are not permitted to travel over Russia.

Air China, China Eastern Airlines, China Southern Airlines, Hainan Airlines, Sichuan Airlines, and Xiamen Airlines have officially opposed the proposal. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.6% to 25,764.24, and the mainland-focused CSI 300 index edged up 0.1% to 4,610.58. 

The latest data from the People's Bank of China confirmed that rotation from bank deposits into the stock market slowed down in September from the previous month. 

Deposits with non-banking financial institutions, including stock brokers, mutual funds, and trusts, decreased by 1.06 trillion yuan, or about $149 billion, while household savings rose by 3 trillion yuan in the period. 

Beijing Yunji Technology surged 36% to HK $130.30 after the robot maker completed its initial public offering in Hong Kong. 

The company sold 6.9 million shares at a price of HK $95.60 per share and raised net proceeds of HK $593.3 million. 

The domestic tranche of the public offering, accounting for 20% of total shares placed, was oversubscribed by 5,657 times, and the international tranche, accounting for 80% of the offering, was oversubscribed by 18 times.