HK Stock Market Move | China Shenhua Energy (01088) rose nearly 2% as China Pacific Insurance spent HK$300 million to increase its H-share holdings, with Morgan Stanley optimistic about the company's earnings resilience.

China Shenhua Energy (01088) rose nearly 2%, up 1.65% as of press time at HK$43.16, with turnover of HK$128 million. On the news front, on November 4, China Pacific Insurance and its subsidiaries CPIC Life, CPIC P&C, The Pacific Health Insurance, and The Pacific Anxin Agricultural Insurance successively disclosed announcements of increasing their holdings in China Shenhua Energy H-shares to the 5% threshold. According to the announcements, CPIC Life and CPIC Asset Management's portfolio-type insurance asset management products managed by related parties purchased 8.1075 million China Shenhua Energy H-shares through the Stock Connect on October 30, triggering the 5% disclosure threshold. Hong Kong Stock Exchange equity disclosure information shows that on October 30, CPIC Asset Management, as manager of CPIC Life and certain portfolio-type insurance asset management products, bought 8.1075 million China Shenhua Energy H-shares at an average price of HK$42.55 per share. Based on this calculation, the increase amounted to HK$345 million. Morgan Stanley noted in a recent research report that it expects China Shenhua Energy's fourth-quarter earnings to remain resilient. Resumption of production at Shanxi coal mines is still progressing, but overall progress is slow due to continued strict safety inspections and a shift in mindset among coal mining enterprises. In addition, pre-winter heating restocking demand and low power plant inventories are expected to keep thermal coal prices fluctuating at high levels in the short term, implying that China Shenhua Energy's earnings will be resilient through year-end.