Coal sector experiences a sharp surge!

The A-share market experienced a broad correction this morning, with the coal sector surging over 3%, becoming the biggest highlight of the morning A-share market.

Hong Kong-listed coal industry chain stocks also rose sharply, with some stocks soaring over 20 intraday.

Coal Sector Rises Significantly

This morning, the A-share market saw a broad decline, with the Shanghai Composite Index down 0.64%, the Shenzhen Component Index down 1.35%, and the ChiNext Index down 1.67%.

In the market, the coal sector surged, with gains exceeding 3%, making it the top-performing sector of the morning. Zhengzhou Coal & Electricity and Yankuang Energy hit the daily limit. Several stocks, including China Coal Energy, Shaanxi Black Cat, and Lu’an Environmental Energy, rose over 5%.

Geopolitical tensions caused oil prices to spike temporarily, sharply increasing market attention on alternative energy sources like coal.

The petroleum and petrochemical sector also strengthened this morning, with Guanghui Energy, Donghua Energy, and Tongyuan Petroleum rising over 5%.

Fangzheng Securities recently noted that if the US-Iran conflict eases and the Strait blockade is short-lived, coal prices may have limited upside; however, if the blockade persists longer or becomes normalized, the coal price center will shift upward, potentially further consolidating coal’s role as an energy ballast.

The agricultural, forestry, animal husbandry, fishery, steel, and basic chemical sectors also saw notable gains.

Defense and military industries, machinery equipment sectors declined the most.

In terms of concept sectors, glyphosate, fertilizer, natural gas, and biodegradable plastics also strengthened during the morning session.

Hong Kong Stocks: China Xuyang Group Surges Over 20% on Volume

Hong Kong stocks also declined overall this morning, with the Hang Seng Index falling more than 1% intraday. Among the constituent stocks, Nongfu Spring, Luoyang Molybdenum, CSPC Pharmaceutical, and Li Ning led declines. China National Offshore Oil Corporation (CNOOC) and China Hongqiao led gains.

Among the Stock Connect stocks, China Xuyang Group surged, with an intraday increase of over 20%, and trading volume significantly expanded compared to previous sessions.

According to the company’s official website, China Xuyang Group was founded in 1995 and is a large enterprise integrating coke, chemicals, new energy, and new materials. It operates nine production parks in Hebei Xingtai, Dingzhou, Laoting, Cangzhou, Shandong Yuncheng, Dongming, Inner Mongolia Hohhot, Jiangxi Pingxiang, and Indonesia Sulawesi, providing operational management services for projects including Luoyang Longze (coke), Shanxi project (coke), Jilin Dingyun (coke), Sichuan Nengtou Wuchan (coke), Tian’an Chemical (coke), Wuhai Guangna Chemical (coke), Henan Haixing Chemical (tar), and Jilin Kangle (aniline).

Other Hong Kong Stock Connect stocks such as Xiangfeng Group, Qingsong Health, and Health 160 also saw strong gains.

Health 160 announced that, as of December 31, 2025, the group has made positive progress in digital healthcare solutions. In 2025, the group partnered with 82 public secondary and above hospitals to operate “160AI Hospitals,” a growth of over 720% compared to 2024. In Q4 2025 alone, 52 new public hospitals joined, a 420% quarter-over-quarter increase. These new collaborations are based on the group’s innovative “160AI Hospital” operational model, which is one of the core products of its digital healthcare solutions, marking significant market penetration and deeper integration into the broader healthcare system.

Multiple Domestic Oil and Chemical Futures Soar, Low-Sulfur Oil Hits Yearly High

In the domestic futures market, the main contract for low-sulfur oil surged over 19%, hitting a new high for the year intraday.

Crude oil futures also rose sharply, with the main contract up over 18%.

Additionally, fuel oil, para-xylene, and PTA futures also saw significant gains this morning.

Proofreader: Ran Yanqing