Xin Hua Cai Jing·2025-10-20 09:43Group 1 - The A-share market has shown a correction trend since October, particularly in technology stocks represented by the ChiNext and STAR Market, while the dividend style has returned, with the Shanghai Dividend Index rising by 5.6% as of October 20, marking its best monthly performance of the year [1] - The surge in the Shanghai Dividend Index is largely attributed to coal stocks, with the Shenwan Coal Index rising over 12% in October, leading all 31 Shenwan first-level industry indices, and outperforming the second-place banking index by 7 percentage points [1] - Major coal stocks such as Dayou Energy, Baotailong, Antai Group, and Zhengzhou Coal Electricity have seen significant monthly gains, with Dayou Energy leading the sector with a nearly 79% increase [1] Group 2 - The sudden strength of the coal sector in October is likely driven by expectations of a cold winter, as the strongest cold air mass of the year has been reported, leading to significant temperature drops across northern regions [2] - The NOAA has predicted the continuation of the La Niña phenomenon, which is expected to strengthen cold winter expectations in China [2][3] - October is a critical period for coal stockpiling ahead of winter, with supply constraints due to safety inspections and reduced production, while demand remains strong due to winter preparation and speculative buying [4] Group 3 - Domestic thermal coal prices have been rising since hitting a low in May, with prices for major markets recently surpassing 600 yuan/ton [4] - However, there are expectations that the domestic thermal coal market may shift from strong to weak, with potential supply constraints due to increased safety inspections and a possible decrease in demand as prices rise [5]