The power sector continued its active performance on Monday, August 3rd, with multiple stocks showing gains against the broader market trend. Leshan Electric Power Co., Ltd. hit the daily limit up, while Huayin Electric Power Co., Ltd. and Jinko Technology Co., Ltd. rose by over 5%. Several other stocks, including Datang International Power Generation Co., Ltd., Guangdong Yudean Group Co., Ltd., Xiexin Energy Co., Ltd., and Jiaze New Energy Co., Ltd., all climbed by more than 3%.
In the ETF space, the Power ETF Huabao (159146), which offers comprehensive exposure to wind, solar, hydro, thermal, and nuclear energy, traded firmly in positive territory throughout the day. It closed with a gain of 1.06%, marking its fourth consecutive daily increase.
On the news front, electricity loads in multiple regions have set new historical records. Driven by a recent widespread heatwave, the operating areas of the State Grid Corporation of China saw several regions hit new peak loads. Between July 27 and 31, two regional grids (North China and Northeast China) and five provincial-level grids (Tianjin, Hebei North, Jiangsu, Liaoning, and East Inner Mongolia) saw their loads repeatedly breach previous highs.
Additionally, the nuclear power sector received a policy boost. The State Council recently approved eight new nuclear power units, confirming a trend towards large-scale, routine construction of nuclear power during the "15th Five-Year Plan" period. This development continues to strengthen the medium-to-long-term outlook and growth certainty for the sector.
Where to focus next
According to Guosheng Securities, the power sector is experiencing a sustained recovery in both volume and pricing. On the volume side, during the peak summer season, power supply-demand balances are expected to be tight in areas like Central China, Southwest China, East China, and the Southern Power Grid. On the pricing side, summer electricity prices continue to improve in most regions, leading to a steady improvement in the sector's overall fundamentals.
For asset allocation, the brokerage suggests focusing on thermal power companies that have an integrated coal-power advantage, a high proportion of long-term coal contracts, and a potential for a turnaround in electricity prices. In the hydropower sector, improving water inflow conditions and expectations of steady profit growth in the second quarter make these stocks attractive for portfolio allocation. The coordination between computing power and electricity is also a trend worth watching, as it could open new growth avenues for green power companies.
Furthermore, supportive policies are expected to underpin both volume and pricing. With a dense schedule of nuclear power plants starting operations in 2026, related nuclear power companies are set to benefit from multiple catalysts. The Power ETF Huabao (159146) and its feeder fund (Code: 026949) focus on the power and public utilities sector, offering comprehensive coverage of thermal, hydro, wind, nuclear, and solar power. This structure allows investors to capture the growth potential of new energy sources while also benefiting from the high dividends and stable cash flows of traditional power leaders, smoothing out market volatility. It aims to achieve a dual strategy of "defensive foundation + growth potential."
Data source: Shanghai and Shenzhen stock exchanges, etc. *Institutional views reference source: Guosheng Securities, "First Batch of 8 Nuclear Power Units Approved Under the '15th Five-Year Plan'; Power Sector Volume and Price Recovery Continues."
Related fee information for the ETF: When investors subscribe for or redeem fund shares, the subscription and redemption agency may charge a commission of up to 0.5%. Over-the-counter trading fees are subject to the actual charges of the securities company, and no sales service fee is charged. Related fee information for the Huabao CSI All-Share Power Public Utilities ETF Feeder Fund: ① Subscription fee: 0.3% for amounts under 2 million yuan; 1,000 yuan per transaction for amounts of 2 million yuan or more. ② Redemption fee: Within 7 days, 1.5% for both individual and institutional investors; after 7 days, no redemption fee for individual investors; from 7 to 30 days, 1.0% for institutional investors; from 30 to 180 days, 0.5% for institutional investors; after 180 days, no redemption fee for institutional investors. ③ Sales service fee: None.
Risk disclaimer: The Power ETF Huabao passively tracks the CSI All-Share Power Public Utilities Index. The index's base date is December 31, 2004, and its release date is July 15, 2013. The composition of the index constituents is adjusted according to the index's compilation rules. Its back-tested historical performance does not indicate future performance. The index constituents mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute any form of investment advice and do not represent the holdings or trading activity of any fund managed by the fund manager. The fund manager has assessed the risk level of this fund as R3-Medium Risk, suitable for investors with a balanced (C3) or higher risk tolerance. Please refer to the sales organization for the appropriate matching opinion. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression) is for reference only. Investors must be responsible for their own investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers, and the author is not responsible for any direct or indirect losses arising from the use of this content. Fund investment carries risks. Past performance of a fund is not indicative of its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment should be undertaken with caution.