The Zhitong Finance App learned that gas stocks fell again. As of press release, Xinao Energy (02688) fell 5.99% to HK$86.35; China Resources Gas (01193) fell 4.48% to HK$24.5; Transportation Gas (01407) fell 2.78% to HK$0.7; and Kunlun Energy (00135) fell 0.34% to HK$5.95.
A recent research report by Anxin International pointed out that due to the effects of the Federal Reserve's policies, etc., the external environment is becoming more complicated, and fluctuations in European gas prices have increased, which has had a certain impact on downstream urban combustion. However, we are still optimistic about the gradual recovery of domestic natural gas consumption in Q3 and the recovery of gross margins. All provinces and cities across the country have successively implemented upstream and downstream natural gas linkage mechanisms to re-examine residential gas prices, which is beneficial to the urban fuel industry to further improve prices. Furthermore, Citibank's previous report indicated that many gas stocks have fallen by about 17 to 23% in the past three months, believing that they are currently a better entry point for urban gas distributors in China, so this may be enough to reflect market concerns that retail gas sales are falling short of expectations.