HK Stock Market Move | Sinopec (00857) rose more than 3%, leading the way in oil stocks. Guidelines for managing the market value of state-owned enterprises have been introduced, highlighting the allocation value of the "three barrels of oil".

Oil stocks collectively rose, as of the time of writing, PetroChina (00857) rose by 3.4% to 6.08 Hong Kong dollars; Sinopec (00386) rose by 2.32% to 2.41 Hong Kong dollars; CNOOC (00883) rose by 1.97% to 18.66 Hong Kong dollars. In terms of news, the State-owned Assets Supervision and Administration Commission recently issued guidance to encourage central enterprises to manage market value. EB SECURITIES pointed out that with the coming of the peak season for natural gas, as well as the improvement in medium- to long-term natural gas demand and the continuous advancement of market-oriented reforms, the three major oil companies are expected to benefit greatly as leaders in the natural gas industry. In addition, the valuation of the three major oil companies is significantly undervalued compared to overseas giants, and their long-term growth potential is expected to be realized continuously. Furthermore, on December 2, the active trading yield of 10-year government bonds fell below 2.0%, attracting market attention to high dividend yield assets once again. EB SECURITIES noted that since the third quarter, the expected dividend yield of the three major oil companies has shown a stable trend of increasing compared to the 10-year government bond yield. As of December 6, the dynamic dividend yield of PetroChina, China Petroleum & Chemical Corporation, and CNOOC Limited A-shares compared to the 10-year government bond yield is 3.74%, 3.35%, and 3.12% respectively. The yield differentials of PetroChina and CNOOC Limited have surpassed the level in the second quarter of 24, highlighting the current positional value.