HK Stock Market Move | Coal stocks collectively decline as oil prices and freight rates decrease, bringing coal prices down. Institutions indicate that the favorable market for coal prices in the peak season can still be expected.

Coal stocks collectively fell, as of the time of publication, China Coal Energy (01898) fell 5.23% to HKD 9.79; Yankuang Energy Group (01171) fell 4.35% to HKD 10.82; China Shenhua Energy (01088) fell 1.51% to HKD 40.48; YANCOAL AUS (03668) fell 1.42% to HKD 29.1. On the news front, last week, the price of 5500 kcal coal at Qinhuangdao Port was 846 yuan/ton, a week-on-week decrease of 1.6%. Orient pointed out that the basic fundamentals of the coal industry have not changed significantly, mainly due to the short-term oil price and shipping cost declines leading to a fall in coal prices, and suggested focusing on opportunities for layout on the left side of the sector. Cinda pointed out that due to the impact of hydropower ramping up, power plant daily consumption performance is weak and inventories continue to accumulate, coupled with the easing of geopolitical conflicts leading to a decline in energy prices, the coal market is under pressure for a rebound. Looking ahead to July and August, we believe that there is still hope for a strong seasonal market for coal prices. With the current full-scale retreat of the coal sector, investors are advised to focus on allocation opportunities.