HK Stock Market Move | Coal stocks continue recent uptrend. Institutions point out that current coal prices are still at a relatively low level, and supply contraction is expected to drive coal prices higher.

Coal stocks continued their recent upward trend, as of the time of writing, Mongolian coking coal (00975) rose by 5.15% to 12.65 Hong Kong dollars; Yankuang Energy Group (01171) rose by 4.38% to 13.36 Hong Kong dollars; KINETIC DEV (01277) rose by 3.23% to 1.92 Hong Kong dollars; YANCOAL AUS (03668) rose by 2.36% to 33.78 Hong Kong dollars; China Coal Energy (01898) rose by 2.11% to 12.58 Hong Kong dollars. On the news front, according to a report by Caixin, on February 3rd, Indonesian mining officials stated that due to the significant reduction plan proposed by the Indonesian government, the country's miners have suspended the export of spot coal; furthermore, the production quotas issued by Indonesia to major miners last month were reduced by 40% to 70% compared to the annual level in 2025, as part of the country's plan to boost coal prices. China Great Wall released a research report stating that the logic of coal price increase driven by supply tightening has been validated once again. The bank pointed out that domestically, the rapid tightening of supply was achieved in the second half of 2025 through the form of exceeding coal mine production quotas, and the Qinhuangdao thermal coal spot price also rose from the lowest of 609 yuan per ton to 834 yuan per ton. Overseas, the general trend of coal prices is similar to domestic prices, with coal-exporting countries like Indonesia hoping to raise coal prices to improve business performance and boost government revenues. Based on recent policies by the Indonesian government, supply tightening driving coal prices up has become an important measure. Taking into account both domestic and overseas factors, current coal prices are still relatively low and there is still a distance from reasonable prices, with the logic of policy-driven supply tightening lifting coal prices.