Coal stocks leapt on Thursday after UBS said in a research report that China coal prices were likely to keep rising in the short term.
China Shenhua , whose target price UBS pegged at HK$101, shot up 9.4 percent to HK$51.10. China Coal surged 5.8 percent to HK$26.55 and Yanzhou Coal jumped 8.8 percent to HK$16.78.
UBS noted, however, in its report that the challenge for share valuation is that China's coal pricing climate is without precedent. The country became a net importer and showed little coal price weakness in the third-quarter, it said.
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