HK Stock Market Move | Coal stocks continue to rise in the near term, with the coal industry facing sustained tightening in supply. Institutions say that coal prices have upward flexibility in the fourth quarter.

Coal stocks continued to rise in the near term. As of the time of this report, China Coal Energy (01898) rose by 6.39% to HK$10.99; Yankuang Energy Group (01171) rose by 3.28% to HK$11.34; China Shenhua Energy (01088) rose by 2.36% to HK$40.76; and YANCOAL AUS (03668) rose by 1.27% to HK$28.74. Founder released a research report stating that the sentiment of coal prices has been significantly affected after the issuance of oversupply documents from production areas. Currently, the tightening of supply in the coal industry has become an investment theme. The situation where coal supply exceeds demand is expected to gradually reverse, and coal prices are expected to continue to rise. The high coal consumption brought by the summer heat in 2025 will maintain a high level, stimulating coal demand. The supply and demand pattern of coal is expected to improve. With the gradual implementation of future "anti-inward" policies, restrictions on imported coal can also be expected. Guosen released a research report stating that since the middle of 2024, due to the decline in coal prices and poor profits of coal enterprises, the profits of coal enterprises are expected to improve after the rebound of coal prices in the second half of 2025. In addition, with this round of market improvement, the performance of the coal sector is significantly weaker than other sectors, but the bottom is clear. The sector is expected to rebound in the fourth quarter.