The Zhitong Finance App learned that coal stocks rose in early trading. China Shenhua (01088) rose 4.36% to HK$35.9; Yankuang Energy (01171) rose 3.73% to HK$19.48; and China Coal Energy (01898) rose 3.55% to HK$8.76.
According to the news, it was recently reported that domestic regulators are considering reducing the 20% income tax that mainland individual investors need to pay when receiving dividends when investing in Hong Kong listed companies through Hong Kong Stock Connect. CICC believes that if the Hong Kong Stock Connect dividend tax relief is implemented, it is expected to further boost the enthusiasm of mainland investors to invest in Hong Kong stocks, especially in sectors related to high dividends, boost sentiment in the short term, and help improve the liquidity of the Hong Kong stock market in the long term.
Everbright Securities recently pointed out that the performance of coal companies in 24Q1 was divided, leading coal companies had more stable profits, and dividend ratios were higher than the industry average, which highlighted the investment value. The net profit of listed coal companies in 2024 is calculated using the annualized net profit of 2024Q1 and calculated based on the 2023 dividend ratio. Currently, the average dividend rate of the coal sector is 5.4%, of which the average dividend rate for the thermal coal sector is 5.5%, and the average dividend rate for the coking coal sector is 4.6%.