HK Stock Market Move | Coal stocks continue their recent upward momentum as the 14th Five-Year Plan for coal is announced. Analysts indicate that strict supervision and environmental regulations are constraining the release of supply.

Coal stocks continued their recent upward trend. As of the time of writing, MONGOL MINING (00975) rose by 4.13%, trading at HKD 9.57; SHOU GANG RES (00639) increased by 3.63%, trading at HKD 2.71; Yankuang Energy Group (01171) went up by 3%, trading at HKD 13.05; and YANCOAL AUS (03668) climbed by 1.44%, trading at HKD 32.42. In terms of news, on August 10, the National Development and Reform Commission and the National Energy Administration released the "14th Five-Year Plan for the Development of the Coal Industry." CITIC Futures published a research report stating that overall, the "14th Five-Year Plan" focuses more on structural optimization of coal supply rather than total contraction or expansion; the main contradiction in the industry has shifted from "Is there enough?" to "Is it good?" The current policy planning has a diminishing marginal impact on coal supply, with market operations more influenced by dynamic fundamentals. Shanxi indicated that strict safety and environmental regulations constrain the release of supply, and the frequent accidents in Shanxi have a greater impact on coking coal. Summer has seen less water, providing strong support for coal and electricity demand. During the mid-year reporting season, market trading styles focus on performance, with the subsequent upward momentum of coal stocks driven by prices. Sinolink noted that in the short term, attention should be paid to a new round of inventory replenishment around September, driving an upward trend in coal demand. In the long term, there is optimism about the rise of the central price of thermal coal leading to a double boost in EPS and valuation.