01171 Overview

Global Energy Supply Risks: The situation in Iran has heightened global energy supply risks, potentially leading to an increase in coal prices, as noted in a CICC report.

Strategic Importance of Coal: Coal is becoming increasingly significant for China as a key energy source and raw material for chemicals, with potential for enhanced valuation of high-quality coal assets.

Stock Recommendations: JPMorgan recommends stocks such as YANKUANG ENERGY, YANCOAL AUSTRALIA, CHINA COAL ENERGY, and SHAANXI COAL IND, anticipating strong performance in coal and aluminum sectors.

Short Selling Data: The report includes short selling data for the recommended stocks, indicating varying levels of short interest across these companies.

BofA Securities' Coal Outlook: BofA Securities has turned neutral on China's coal market due to government controls mitigating weak demand, but recent weeks have seen increased supply risks.

Yankuang Energy Upgrade: The broker raised profit forecasts for Yankuang Energy by 29% for 2026 and 34% for 2027, increasing the target price from $11.5 to $17 and upgrading the stock from Neutral to Buy.

China Shenhua Forecast Adjustment: BofA also lifted profit forecasts for China Shenhua by 10-12% for the same period, raising the target price from $43 to $50 and upgrading the stock from Neutral to Buy.

Short Selling Data: As of March 4, 2026, Yankuang Energy and China Shenhua have significant short selling activity, with ratios of 28.005% and 40.898%, respectively.

Market Reaction to Geopolitical Tensions: Chinese metal stocks experienced a sell-off due to risk-aversion stemming from the conflict involving the US, Israel, and Iran, while coal stocks performed well due to rising price expectations and low investor positions.

JPMorgan's Insights on Metal Stocks: JPMorgan remains optimistic about gold and copper stocks, recommending quality mining shares during market dips, with ZIJIN MINING identified as a top pick.

Coal Price Projections: The firm anticipates that geopolitical tensions will elevate coal prices in the short term, driven by increased demand as crude oil and natural gas prices rise, although sustainability depends on potential disruptions in the Strait of Hormuz.

Aluminum Price Forecast: JPMorgan's global commodities team predicts that aluminum prices could surge towards USD4,000 per ton if significant supply disruptions occur, influenced by higher energy and freight costs.

Market Performance: The Hang Seng Index (HSI) rose slightly by 12 points to close at 26,847, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) fell by 100 points and 4 points, respectively, with a total market turnover of $285.43 billion.

Active Heavyweights: Major stocks like Tencent, Xiaomi, and Meituan experienced declines, with Tencent dropping 4% to close at $558, while other heavyweights also saw significant short selling activity.

Notable Movers: Trip.com saw a significant drop of 6.1%, while Xinyi Glass and China Shenhua recorded gains of 5.9% and 5.7%, respectively, with several stocks hitting new highs.

Short Selling Trends: Various stocks experienced notable short selling, with Techtronic Industries and China Resources Mixc among those hitting new highs, while others like Kingdee International and Meitu faced substantial declines.

Market Performance: The HSI dropped 109 points (0.4%) to 26,724, while the HSTI fell 119 points (2.2%) to 5,347, and the HSCEI decreased by 48 points (0.5%) to 9,004.

Active Heavyweights: Major stocks like TENCENT, XIAOMI, and MEITUAN saw declines, with TENCENT down 3.4% and XIAOMI down 2.6%, while BABA fell 0.9%.

Notable Movers: XINYI GLASS and CHINA SHENHUA experienced significant gains, with XINYI GLASS up 6.2% and CHINA SHENHUA up 5.4%, while TRIP.COM-S dropped 6.1%.

Short Selling Trends: High short selling ratios were observed in several stocks, including XIAOMI (20.155%) and MEITUAN (17.261%), indicating increased bearish sentiment among investors.

Stock Performance: YANKUANG ENERGY's stock opened up 1.33% and peaked at HKD12.2, closing at HKD12.14, reflecting a 7.91% increase with a trading volume of 35.2239 million shares.

Short Selling Activity: The company experienced short selling worth $43.82 million, with a short selling ratio of 22.604%.

Subsidiary Sale: YANKUANG ENERGY transferred 100% equity interests in its subsidiary, Xintai Coal, through public listing, attracting interest from multiple prospective buyers.

Bidding Outcome: The highest bid for Xintai Coal during the listing period was RMB3.05 billion, as indicated by the online bidding trading system.