Citi maintained its Mengjiao (00975-HK) purchase investment rating. The target price dropped slightly from HK$10.2 to HK$9.8. Monjiao predicted an annual production increase of 29% from 2011-2014. It is expected that the company will benefit from RMB appreciation and improved transportation infrastructure, and its fundamentals remain stable.

Citi said that since the market is concerned about Mongolian policy risks, Mongio has been outperforming its peers since the end of September. The bank believes that market concerns are excessive, and Monjo is less affected by policies related to foreign investment. It is believed that the completion of the road project connecting its coking coal mine to the Mongolian border will reduce implementation concerns.

Montgio rose 3.26% throughout the day to close at HK$6.65.