[Special Stocks] Shipbuilding Stocks Expected to Benefit from US-China Unfair Trade Investigations in Shipbuilding Sector

As the United States announced last week that it will launch an unfair trade investigation into China's shipping, logistics, and shipbuilding sectors, domestic shipbuilding stocks have been gaining for two consecutive trading days on expectations of indirect benefits.

As of 9:46 a.m. on the 24th, STX Heavy Industries is trading at 16,730 KRW, up 1,720 KRW (11.46%) from the previous close. The trading volume is 810,000 shares, with a trading value of approximately 13 billion KRW.

At the same time, Hanwha Ocean is up 3.45% at 35,950 KRW, and HD Hyundai Heavy Industries is up 3.35% at 129,500 KRW.

These stocks have continued their upward trend for two consecutive trading days following the previous day.

As the possibility of the U.S. imposing trade sanctions on Chinese shipbuilding and shipping companies increases, expectations are growing that domestic shipbuilding firms will benefit. On the 17th, the U.S. Trade Representative (USTR) announced the initiation of an investigation under Section 301 of the U.S. Trade Act targeting China's shipping, logistics, and shipbuilding industries. Section 301 of the U.S. Trade Act allows unilateral measures if a trading partner is found to violate trade agreements legally or administratively or to harm U.S. interests.

According to the U.S. economic media CNBC, this investigation follows a petition submitted on March 12 by five nationwide labor unions in the U.S., requesting an investigation into China's maritime, logistics, and shipbuilding policies and practices. Katherine Tai, USTR representative, stated, "We will begin a full and thorough investigation into the concerns raised by the unions."