HK Stock Market Move | China Coal Energy (01898) falls more than 5%. The company's current price-to-book ratio is low and will further optimize market value management work.

China Coal Energy (01898) fell by more than 5%, dropping 5.01% to HK$9.1 as of the time of publication, with a turnover of HK$1.46 billion. On the news front, on December 17, the State-owned Assets Supervision and Administration Commission of the State Council issued the "Several Opinions on Improving and Strengthening the Market Value Management of Central Enterprises Holding Listed Companies" (referred to as the "Opinions"), clarifying the market value management goals and directions of central enterprises and proposing improvements and strengthening of market value management work in six aspects such as mergers and acquisitions, stock buybacks and increases. As a central enterprise coal industry leader with a relatively low price-to-book ratio (PB), relevant personnel from China Coal Energy responded that the requirements put forward in the "Opinions" are clearer, which is beneficial for the company. The company will study and optimize market value management work in accordance with policy requirements. CITIC SEC pointed out that the various measures in the "Opinions" will benefit the coal sector, with traditional central enterprise coal industry leaders, coal companies with stable growth fundamentals, as well as coal companies trading below net asset value, all expected to benefit. Citigroup expects that the State-owned Assets Supervision and Administration Commission will encourage more state-owned enterprises to enhance shareholder value through buybacks, increased dividends, etc. China Coal Energy has the potential for increasing dividends. Citigroup also expects the State-owned Assets Supervision and Administration Commission to promote more merger and acquisition activities.