HK Stock Market Move | Coal stocks extend decline as NDRC and other departments urge Shanxi Province to speed up resumption of production at suspended coal mines.

Coal stocks extended their decline. As of press time, Yankuang Energy Group (01171) fell 5.00% to HK$10.63; SHOUGANG RES (00639) fell 4.74% to HK$2.615; China Coal Energy (01898) fell 4.34% to HK$9.92; China Shenhua Energy (01088) fell 2.30% to HK$41.56. On the news front, on October 16, the National Development and Reform Commission, the National Energy Administration, together with relevant departments, held a meeting in Taiyuan, Shanxi, to advance work on accelerating coal mine resumption of production, increasing output, and ensuring supply. The meeting required Shanxi Province to speed up the resumption of production and work at suspended coal mines, make every effort to increase coal supply on the basis of ensuring safety, and promote the stable operation of the coal market. Changjiang believes that existing resumption of production may struggle to make up the shortfall. Given that downstream power plants still have room to absorb coal prices, and with stockpiling demand continuing to be released, coal prices are expected to remain strong at high levels from November to December. The current sector valuation reflects a coal price of about 850 yuan/ton, significantly below the current spot coal price, and the adjustment may present an opportunity for sector allocation.