Since this year, the main line leading the rise in A-shares has unexpectedly fallen on the coal sector, which is regarded as a “traditional cyclical variety.” According to Wind data, as of October 29, the coal industry index has risen by more than 23% this year, while technology indices such as semiconductors, AI computing power, and AI applications have been mediocre during the year. The sector market led to a rise in the net value of related fund products. As of October 28, many coal-themed index funds had returned more than 16% this year. Behind the “counterattack” of coal is a joint restructuring of supply and demand and capital styles. Supply-side safety supervision is getting stricter, operating rates are low in major production areas, and imported coal is shrinking. Combined with peak summer and winter storage expectations, coal prices have remained volatile at a high level; the logic of supply-side thermal power protection and coal chemical substitution is still ongoing. More importantly, capital is shifting from chasing high growth to a definitive asset revaluation of “undervaluation+high dividend+stable cash flow” — leading coal dividend rates are generally 4% to 5%, and scarcity is prominent in a low interest rate environment. Agencies generally believe that in a volatile market, the energy sector's defensive attributes and dividend capacity are being repriced.

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