HK Stock Market Move | Geopolitical premium fell, coal stocks dropped. Yankuang Energy Group (01171) and YANCOAL AUS (03668) both fell more than 6%.

Coal stocks are once again on the decline. As of the time of writing, Yankuang Energy Group (01171) fell by 6.54%, trading at 14.73 Hong Kong dollars; YANCOAL AUS (03668) fell by 6.51%, trading at 38.18 Hong Kong dollars; China Coal Energy (01898) fell by 3.29%, trading at 13.21 Hong Kong dollars. On the news front, expectations of easing tensions between the US and Iran have increased, reducing geopolitical risks. On the 6th, international oil prices fell sharply, with US oil and Brent oil dropping by over 7%. Founder believes that the coal sector benefits from the current energy crisis brought on by geopolitical conflicts. If the US-Iran conflict is resolved and the blockade of the Strait is short-lived, the upside for coal prices may be limited; if the blockade persists or becomes the norm, the overall price of coal may rise, further solidifying its position as a key energy source.