Hong Kong stock concept tracking| Stock repurchase increased borrowing landed Coal companies have huge interest margin space (with concept stocks)

After the end of last week's meeting, the new macro policy mainly emphasized the issue of debt reduction, which is basically in line with expectations. However, there was no clear explanation for the expected real estate and consumption incremental policy stimulations in the market. More policy verification is still needed, and the market's short-term trading focus has returned to industry logic. Guotai Junan indicated that in 2024, against the backdrop of increasing downward pressure on overall demand, coal prices have displayed unexpected price resilience, reflecting stability in supply and demand. Looking ahead to 2025, the overall fluctuation range of thermal coal prices may further narrow. The investment strategy maintaining dividends is expected to be sustained. As for coking coal, the industry's bottom in 2024 has been validated. In 2025, downstream steel demand is expected to recover under policy stimulation, and coking coal may become the most resilient variety in the coal-coking-steel industry chain. According to Shanxi's report, looking ahead, economic stabilization policies in the fourth quarter combined with heating demand are expected to continue driving growth in industrial electricity and non-electric coal demand. Shanxi stated that with the adjustment of deposit rates, the value of coal dividends has become more prominent. The decrease in deposit rates is guiding funds towards dividend stocks, and coal stocks have shown strong defensive attributes in recent years. In a low interest rate environment, the market is gradually recognizing the value of coal dividends, resulting in a slight decrease in the dividend yield level of coal stocks. Furthermore, with stock buyback programs and increased lending, coal companies have significant room for profit, and coal-listed companies with stable high dividends and characteristics of multiple index components are benefiting more. Investors can consider utilizing S&P dividend ETFs to easily access high dividend and high yield sectors. Related Hong Kong-listed coal sector companies include China Coal Energy (01898), China Shenhua Energy (01088), YANCOAL AUS (03668), SOUTHGOBI (01878), Yankuang Energy Group (01171), among others.