BNP believed that the downturn adjustment on current coal price was faster compared with the coal price downturn in 1998-2003. It is predicted that the QHD benchmark price will be RMB 475 per tonne next year, representing a year-on-year decrease of 8%.

The broker stated that the reduction in coal-related administrative expenses will reduce the costs of coal firms and enhance the competitiveness of domestic coal. CHINA COAL (01898.HK)  +0.010 (+0.216%)    Short selling $20.78M; Ratio 38.659%   was the top pick of BNP, with a rating of Buy and target price of $5.83. The rating of YANZHOU COAL (01171.HK)  -0.100 (-1.550%)    Short selling $32.49M; Ratio 24.479%   was upgraded from Underweight to Hold. The target price was lifted from $4.22 to $6.98. CHINA SHENHUA (01088.HK)  -0.400 (-1.937%)    Short selling $78.66M; Ratio 21.289%   was maintained at Buy and the target price was raised from $25.1 to $26.15.

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