HK Stock Market Move | Coal stocks generally fell, with supply assurance policies reversing expectations of supply contraction. Institutions still optimistic about medium to long-term coal prices.

Coal stocks generally fell, as of the time of writing, CHINA QINFA (00866) fell by 6.29% to 1.64 Hong Kong dollars; Yankuang Energy Group (01171) fell by 4.6% to 13.91 Hong Kong dollars; China Coal Energy (01898) fell by 3.01% to 12.1 Hong Kong dollars; China Shenhua Energy (01088) fell by 0.56% to 45.9 Hong Kong dollars. On the news front, a coal mine accident in Shanxi on May 22 caused a large-scale shutdown of mines in Shanxi Coking Coal Energy Group, and the market expected a tightening supply of coking coal, leading to a consecutive rise in coking coal and coke futures for two weeks. Recently, the Shaanxi Development and Reform Commission released the "Notice on Doing a Good Job in the Energy Supply Guarantee for Peak Summer in 2026," directly reversing the previous expectation of supply contraction, causing coking coal and coke contracts for the near months to hit limit down. Cinda released a research report stating that the supply and demand situation in the coal market is tightening, with ample room for upward price elasticity. We expect coal prices to resume their upward trend after a short period of consolidation. It is important to note that the Shanxi Qinyuan mine accident will have a significant long-term impact on the domestic coal market, rather than just a short-term price pulse in the market. This accident further restricts the release of effective coal capacity in China's coal mines in the long term, solidifying the certainty and sustainability of coal prices in the medium to long term. The long-term investment value of high-quality coal companies has also become more solid.