HK Stock Market Move | Coal stocks rose against the market trend, with China Coal Energy (01898) up more than 6% and YANCOAL AUS (03668) up more than 4%.

Coal stocks rose against the market trend. As of the deadline, China Coal Energy (01898) rose by 6.25% to HK$14.46; YANCOAL AUS (03668) rose by 4.59% to HK$41.44; Yankuang Energy Group (01171) rose by 2.47% to HK$15.35; China Shenhua Energy (01088) rose by 1.86% to HK$48.14. On the news front, due to geopolitical conflicts pushing up overseas coal prices, combined with reduced production in Indonesia and adjustments to export quotas, China imported 26.635 million tons of thermal coal in March this year, a year-on-year decrease of 11.5%. Decreased imports, coupled with a rebound in coal chemical demand and high daily consumption rates of coastal power plants, have resulted in overall low industry inventories during the slow season. In addition, market attention has recently shifted to the El Nio phenomenon. According to reports on the China National Radio website, the National Climate Center predicts that El Nio conditions will be present in May this year, leading to a moderate to strong El Nio event in the summer and autumn. Shanxi believes that the high uncertainty of the US-Iran conflict corresponds to high volatility, but short-term oil price drops are unlikely. With the confirmation of signals of recovery, coal producer price index (PPI) is turning soon, coal prices are expected to rise, and coal stocks are likely to benefit from a "double-barreled" effect. Yankuang Energy Group, which is currently in the most favorable position for overseas capacity layout, and China Coal Energy, which is highly associated with coal chemicals, are in a promising situation. CITIC SEC believes that the probability of the El Nio phenomenon occurring has increased, which may lead to an increase in the number of hot days in the summer, benefiting domestic coal demand and possibly boosting demand for thermal coal in India, thus improving global coal price expectations.