Group 1 - The coal supply and demand situation significantly improved in July, driven by strong demand and a contraction in supply [1] - National electricity consumption increased by 8.6% year-on-year, while thermal power generation rose by 4.3%, reflecting high growth in electricity demand [1] - Coal production decreased by 40 million tons month-on-month due to extreme weather and production restrictions in key coal-producing regions like Inner Mongolia and Shaanxi [1] Group 2 - The National Energy Administration has organized production inspections in key coal-producing provinces, prohibiting overcapacity production, which further limits supply expansion [1] - The only coal ETF in the market, Coal ETF (515220), tracks the CSI Coal Index (399998) and had a dividend yield of 4.97% as of August 22, highlighting its investment value in a declining risk-free interest rate environment [1] - Investors without stock accounts can consider the Guotai CSI Coal ETF Connect C (008280) and Connect A (008279) for exposure to the coal sector [1]

Group 1 - The core viewpoint is that the "anti-involution" policy is expected to lead to continued industry self-discipline and drive a contraction in coal supply [1] - The recommendation is to focus less on short-term earnings reports and more on assessing the implementation of the "anti-involution" policy, particularly its impact on liquidity and risk appetite, which could enhance valuation certainty [1] - The coal ETF (515220), which tracks the CSI Coal Index (399998), has a dividend yield exceeding 5% as of August 12, indicating strong allocation value in a declining risk-free interest rate environment [1] Group 2 - Investors are encouraged to consider gradually accumulating positions in the coal ETF (515220) and its linked funds (Link A: 008279; Link C: 008280; Link E: 022501) to capitalize on investment opportunities in the coal sector [1] - For investors without stock accounts, attention is drawn to the Guotai CSI Coal ETF Link C (008280) and Link A (008279) [1]