HK Stock Market Move | Coal stocks lead the decline, with high inventory and import volumes continuing to suppress coal prices. The long-term advantages of dividend properties are still there.

Coal stocks led the decline, as of press time, SOUTHGOBI (01878) fell by 9.09%, trading at 3.1 Hong Kong dollars; CHINA QINFA (00866) fell by 5.93%, trading at 1.27 Hong Kong dollars; China Coal Energy (01898) fell by 5.11%, trading at 9.09 Hong Kong dollars; MONGOL MINING (00975) fell by 4.58%, trading at 7.29 Hong Kong dollars; China Shenhua Energy (01088) fell by 3.46%, trading at 32.05 Hong Kong dollars; Yankuang Energy Group (01171) fell by 2.24%, trading at 8.72 Hong Kong dollars. In terms of news, according to the China Coal Market Network, due to factors such as lower-than-expected daily consumption of thermal coal, high inventory in the midstream and downstream sectors, and high import coal volume, coal prices have continued to fall. On December 18, the "CCTD Bohai Rim Thermal Coal Spot Reference Price" for 5500K, 5000K, and 4500K specifications were 787, 685, and 586 yuan per ton respectively, with daily decreases of 5, 5, and 7 yuan per ton, and decreases of 39, 40, and 47 yuan per ton respectively compared to the beginning of the month. Sinolink believes that with the traditional peak season coinciding with the signing period for electricity/coal contracts for the year, the market is showing downward price pressure, and predicts that the coal price in the power coal market in 2025 may decline, with the central price for the whole year at around 800-820 yuan per ton. Datong Securities believes that although the short-term prices of thermal coal and coking coal are low, thermal coal is overall supported by strong winter demand, with supply and demand relatively stable, and the short-term downward trend in coal prices does not change the stable long-term trend; coking coal supply has declined, while demand has shown signs of recovery. Although it is still not enough to change the current market buyer's mode, under the policy of stabilizing the housing market, there is a greater hope for short-term stabilization or even a rebound. Looking at the secondary market, the coal sector has experienced significant fluctuations recently. In the short term, the weak fundamentals, coupled with the significant impact of policy hotspots, are causing concerns. However, the long-term dividend advantage of the sector is still strong, and there is no need to worry too much.