HK Stock Market Move | Coal stocks fall again as Shanxi goes all out to promote orderly resumption of coal production; coal companies' Q3 profits diverge quarter-on-quarter.

Coal stocks fell again. As of press time, YANCOAL AUS (03668) fell 4.38% to HK$30.58; Yankuang Energy Group (01171) fell 3.84% to HK$10.76; China Shenhua Energy (01088) fell 2.43% to HK$42.54; China Coal Energy (01898) fell 1.68% to HK$9.685. On the news front, the Shanxi Provincial Energy Administration held a special meeting on the province's coal production increase and supply guarantee on November 2. The meeting emphasized strict implementation of the seventeen new coal regulations and going all out to promote the orderly resumption of coal production and increase output to guarantee supply. According to Mysteel, a total of 40 coking coal mines in Shanxi are still suspended, down 4 week-on-week. It is worth noting that coal companies' third-quarter profits diverged on a quarter-on-quarter basis. Huachuang Securities believes that port spot coal prices rose in the latter half of the third quarter, but long-term contract settlements lagged, with most of the price-increase benefits deferred to the fourth quarter; combined with production declines caused by safety supervision and production restrictions, higher fixed costs per ton of coal, a high second-quarter profit base, and weaker profitability in integrated supporting businesses, this ultimately produced the divergence of "spot prices rising while third-quarter profits weakened quarter-on-quarter."