HK Stock Market Move | CHINA RISUN GP(01907) rose nearly 18% in intraday trading. Geopolitical tensions ignite coal chemical industry. The company is a producer of methanol from coke oven gas.

China Risun GP (01907) rose nearly 18% in early trading this morning. As of the time of publication, it has risen 15.2% to HK$3.79, with a trading volume of HK$7.49 billion. On the news front, geopolitical tensions have boosted the international oil price center. CITIC SEC previously pointed out in a research report that with the rise in oil prices, coal chemical industry may become one of the important factors in the transmission of domestic coal prices. Especially the Middle East region is also a major source of imported methanol for China. If conflicts lead to disruptions in regional logistics, the demand for coal-to-methanol in the domestic market may further increase, and the benefits of methanol consumption may become more apparent. As China's largest producer of coke oven gas to methanol, China Risun GP currently has an annual production capacity of 600,000 tons of methanol. It is one of the core links in the company's "alcohol-ammonia" industry chain. In addition, the company is also the world's largest independent coke producer and a leading global producer of caprolactam.