HK Stock Market Move | Coal stocks lead the decline, institution says coal prices have reached a short-term peak and the medium-term upward trend remains unchanged.

Coal stocks led the decline, as of the time of publication, Yankuang Energy Group (01171) fell 3.57% to HK$11.06; Yancoal Australia (03668) fell 3.42% to HK$27.64; China Shenhua Energy (01088) fell 2.73% to HK$40.6; China Coal Energy (01898) fell 2.47% to HK$11.46. On the news front, coal prices have continued to decline year-on-year in the first three quarters of 2025, with coal company performance also falling year-on-year. However, influenced by the "anti-internal circulation" policy, coal prices have significantly recovered on a month-on-month basis in the third quarter, and coal company performance has also improved significantly on a quarter-on-quarter basis. Guotai Junan Securities released a research report stating that if coal prices continue to rise above 830 yuan/ton, we believe that the short-term unexpected rise in coal prices may come to an end. In October, the output of industrial raw coal reached 4.1 billion tons, a decrease of 2.3% year-on-year but remaining flat month-on-month. From a long-term perspective, the core reason for the current rise in coal prices is the fundamental reversal of the supply-demand situation in the coal industry since May. Based on this fundamental change, the overall upward trend in coal prices in the medium term will not change.