HK Stock Market Move | Coal stocks have accelerated their decline recently; Shanxi coal mines are speeding up resumption of work and production; the market is concerned that high coal prices will curb downstream demand.

Coal stocks have accelerated their decline recently. As of press time, KINETIC DEV (01277) fell 3.69% to HK$1.695; China Shenhua Energy (01088) fell 3.03% to HK$39; China Coal Energy (01898) fell 2.76% to HK$9.515; Yankuang Energy Group (01171) fell 2.67% to HK$10.22. On the news front, the National Development and Reform Commission and other departments had previously explicitly required Shanxi to accelerate the resumption of work and production at suspended coal mines. On October 20, the Shanxi Provincial Energy Bureau reported that as of now, 220 coal mines across the province have completed rectification and smoothly resumed work and production, with raw coal output continuing to rise. Average daily output in September increased by about 220,000 tons compared with August, and daily output has accelerated its recovery since October. It is worth noting that although thermal coal prices remain above 1,000 yuan, market sentiment has begun to weaken. Mysteel data shows that on October 22, the port thermal coal market was "operating weakly and steadily," with downstream inquiries sluggish, purchasing willingness low, and transactions difficult. CMSC previously pointed out that short-term downstream acceptance is once again worth watching; as coal prices rise, power plant profitability comes under pressure, and at the trading level this may temporarily suppress bullish expectations in the short term, which is the sector's biggest current disturbance.