Coal stocks led the declines in Hong Kong's market. As of press time, YANKUANG ENERGY (01171) fell 3.57% to HKD 11.06, YANCOAL AUS (03668) dropped 3.42% to HKD 27.64, CHINA SHENHUA (01088) declined 2.73% to HKD 40.6, and CHINA COAL (01898) slipped 2.47% to HKD 11.46.

Despite year-on-year declines in coal prices and coal company earnings for the first three quarters of 2025, prices rebounded significantly quarter-on-quarter in Q3 due to reduced industry competition, leading to improved quarterly performance for coal firms.

Guotai Haitong Securities noted that coal prices have risen above RMB 830 per ton but suggested the short-term rally may be nearing its end. In October, industrial coal output stood at 410 million tons, down 2.3% year-on-year but flat month-on-month.

The long-term driver behind the coal price surge remains a fundamental shift in supply-demand dynamics since May, ensuring the mid-term upward trend in coal prices remains unchanged.