HK Stock Market Move | Coal stocks have become active again. The current supply and demand for coal are both favorable. Institutions are optimistic that coal prices will continue to rise.

Coal stocks have become active again. As of the time of writing, China Coal Energy (01898) rose by 4.01% to 11.93 Hong Kong dollars; KINETIC DEV (01277) rose by 3.16% to 1.63 Hong Kong dollars; Yankuang Energy Group (01171) rose by 2.8% to 11.38 Hong Kong dollars; China Shenhua Energy (01088) rose by 0.87% to 41.62 Hong Kong dollars. In terms of news, recently, driven by factors such as increased demand for coal in winter and supply constraints, coal prices have risen. Founder points out that the current tightening of the supply side in the coal industry has become an investment theme. With the peak demand for winter approaching in the fourth quarter, the situation of coal oversupply is expected to be reversed, and coal prices are expected to continue to rise. With the contraction of supply and the increase in demand, the coal supply-demand situation may improve, and there may also be prospects for restrictions on imported coal in the future. The bank believes that Shenhua and China Coal, which have a high proportion of long-term contracts and strong stability, are expected to see valuation recovery if coal prices continue to rebound. Yankuang Energy Group (Hong Kong stock), a undervalued elastic target, may also see valuation repair.