NEW YORK ( TheStreet) -- SinoCoking Coal and Coke Chemical Industries (SCOK) and Yanzhou Coal Mining (YZC) are expecting a near-term boost in performance. The pop should come from positive growth prospects, acquisitions and strong earnings outlooks of the companies; rising coal prices on increasing demand from emerging markets; and supply constraints.However, the onslaught of government measures to ban operations at smaller mines and the directive to keep prices stable in annual supply contracts could cap the rally. China is seeking to consolidate smaller coal mines into 13 large-scale bases nationwide by 2015, and the ban is unlikely to be lifted until the next two to three quarters. The government issued pricing policies and has ordered companies to maintain stable prices and follow the agreed upon prices in annual supply contracts.
China Coal Stocks to Play: SinoCoking, Yanzhou
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