HK Stock Market Move | Coal stocks rose in the morning session, as the market value management guidelines revealed the good news of the dividend style. The coal sector is expected to benefit.

Coal stocks rose in the morning session, as of the time of writing, SOUTHGOBI (01878) rose by 6.55% to 3.74 Hong Kong dollars; YANCOAL AUS (03668) rose by 3.09% to 31.7 Hong Kong dollars; CHINA QINFA (00866) rose by 2.94% to 1.4 Hong Kong dollars; and China Coal Energy (01898) rose by 2.61% to 9.45 Hong Kong dollars. CITIC SEC released a research report stating that on November 15th, the CSRC issued guidelines on market value management, making specific requirements for the market value management system of major index constituent stocks and valuation enhancement plans for long-term companies trading below net asset value. The bank believes that the disclosure of the guidelines will support dividend stocks, with the coal sector expected to benefit. Leading companies in the coal industry have more stable performance and are also main index constituents, so the benefits may be more pronounced. In addition, nearly half of coal companies have a dividend yield of over 5%, with some companies currently trading below net asset value, including 6 sample companies listed in the CSI 300 and CSI A500 indexes. The bank continued to point out that the scale of coal stocks held by funds in Q3 of 2024 fell compared to the previous quarter, with the scale of actively managed equity funds holdings showing a significant decrease, with an underweight of 0.23% in market value. In the third quarter of this year, thermal coal prices fluctuated slightly, while coking coal prices continued to decline. Combined with improved market risk appetite, the sector saw a significant correction in October. However, after the release of third-quarter reports, the sector's full-year profit and dividend expectations gradually became clearer, combined with positive macroeconomic and market factors. With the expectation of the sector's performance leading to a new round of growth.