HK Stock Market Move | Coal stocks lead gains as Indonesia continues RKAB quota controls on coal production; supply contraction supports coal prices.

Coal stocks lead the gains. As of press time, SHOUGANG RES (00639) rose 11.37% to HK$2.84; Yankuang Energy Group (01171) rose 4.48% to HK$11.2; China Coal Energy (01898) rose 3.71% to HK$10.07; KINETIC DEV (01277) rose 3.28% to HK$1.73. On the news front, Indonesia is expected to maintain its strict control strategy over the annual work plan and budget (RKAB) mining quotas for key mineral resources such as coal and nickel, in order to avoid overproduction of mineral products and ensure international prices do not fall. Currently, Indonesian coal producers are awaiting approval of 2027 RKAB quotas, which are expected to be released as early as December. Delays in quota approvals have already brought supply uncertainty and affected the pace of companies signing long-term agreements. Changjiang stated that if no supply-easing policies beyond expectations are substantially implemented during the year, given that the resumption of production at production sites is still progressing slowly, and considering the current winter peak coal consumption season combined with low power plant inventories, coal prices are expected to remain high in the short term from November to December; looking ahead to 2027, with production sites maintaining the current safety supervision posture, resumption of production may be relatively limited, and coupled with limited proactive increases in imports, the coal price center is expected to rise steadily compared with 2026, thus continuing to favor the current sector's allocation cost-effectiveness.