HK Stock Market Move | Some coal stocks continue to rise as safety supervision becomes stricter. With the upcoming peak season, coal prices are expected to increase. Institutions are optimistic about the dual logic of the coal cycle and dividends.

Some coal stocks continued to rise, as of the time of writing, KINETIC DEV (01277) rose by 5.19%, at HK$1.62; E-COMMODITIES (01733) rose by 4.6%, at HK$0.91; China Coal Energy (01898) rose by 2.63%, at HK$11.71; China Shenhua Energy (01088) rose by 1.3%, at HK$41.98. On the news front, Shenwan Hongyuan Group stated that the maintenance of Daqin Railway has ended, with the gradual increase in transportation volume, but still lower than the same period last year. At the same time, the Central Safety Production Inspection Team will enter fully in November, and the safety supervision situation in the main production areas is becoming more severe, further strengthening the market's expectations of tightening supply. Looking ahead, it is expected that safety supervision will become more stringent after November; the rise in freight rates will lead to a backhaul in transportation, resonating with the peak demand for winter heating season, and it is expected that the price of thermal coal will rise after adjustment. Open Source Securities pointed out that most coal companies still maintain a strong willingness to distribute high dividends, with 6 listed coal companies announcing interim dividend plans in the interim report (China Shenhua Energy/Shanxi Coking Coal Energy Group/Shaanxi Coal Industry/Shanghai Datun Energy Resources/Yankuang Energy Group/China Coal Energy). In the context of high global political and economic uncertainty and expectations of stable economic growth domestically, investment behavior is driven by emotional impulses. The coal sector has both cyclical and dividend attributes. Currently, coal holdings are at a low level, and the fundamentals have reached the inflection point, indicating that it is time to make strategic investments.