HK Stock Market Move | Coal stocks continue recent gains, with thermal coal prices rising significantly recently. Against the backdrop of a decrease in wind power, the attractiveness of low-position sectors has increased.

Coal stocks continued to rise recently. As of the time of writing, Yankuang Energy Group (01171) rose by 4.18% to HK$11.47; YANCOAL AUS (03668) rose by 2.5% to HK$28.7; China Coal Energy (01898) rose by 2.41% to HK$11.06; China Shenhua Energy (01088) rose by 2.29% to HK$41.08. In terms of news, the price of thermal coal has surged recently. According to Guosen Securities, as of October 17, the Qinhuangdao Q5500 thermal coal delivered price was at 748 yuan/ton, a 43 yuan/ton increase compared to the previous period, a 6.1% increase. Some other port price indexes have reached 750 yuan, close to reaching the recommended profit-sharing price of coal-fired power plants, with the potential to reach the 800-860 range. Thermal coal consumption is expected to benefit from the opening of the heating season, coupled with the peak season for non-electric coal, prices are expected to continue to rise. Guotai Haitong released a research report stating that the industry's fundamentals have seen a double improvement in supply and demand, and coal prices have continued to rise beyond expectations. In terms of market sentiment, the re-emergence of trade conflicts may lead to a more intense style rotation demand between high and low, whether the defensive dividend attributes or the low-level fundamental turning point of coal may greatly increase their attractiveness to the market.