HK Stock Market Move | Electric power stocks rise in early trading period, with national grid engineering completed investment for January to August increasing by 23.1% year-on-year, indicating high industry demand certainty and growth.

Power stocks rose in early trading. As of the time of writing, CGN POWER (01816) rose by 4.90% to 3 Hong Kong dollars; CGN NEW ENERGY (01811) rose by 4.55% to 2.3 Hong Kong dollars; Huaneng Power International, Inc. (00902) rose by 3.99% to 4.43 Hong Kong dollars; Huadian Power International Corporation (01071) rose by 3.76% to 4.05 Hong Kong dollars. In terms of news, the National Energy Administration released national electricity industry statistics for January-August, showing that by the end of August, the cumulative installed electricity generation capacity in China is approximately 3.13 billion kilowatts, an increase of 14.0% year-on-year. Among them, CECEP Solar Energy's installed capacity is approximately 750 million kilowatts, an increase of 48.8% year-on-year; wind power installed capacity is approximately 470 million kilowatts, an increase of 19.9% year-on-year. From January to August, the total investment in power projects by major power generation companies in China reached 497.6 billion yuan, a year-on-year increase of 5.1%. The investment in grid projects was 333 billion yuan, a year-on-year increase of 23.1%. Guosen released a research report stating that in the first half of 2024, the performance of grid companies generally showed steady growth, and with deliveries entering the peak season in the second half of the year, performance elasticity is expected to further improve. With the development of new energy, increased electricity consumption, and renovation of old power grids among multiple demands, the investment cycle for grid projects is long, and there is great potential for Chinese companies to increase their overseas market share. China Securities Co., Ltd. pointed out that based on the fitting of the growth rates of various sectors of fixed assets for the next year due to new construction projects, it is found that the supply growth rate of the power equipment industry, especially in the ultra-high voltage direction, is relatively low. In situations where industry demand is highly certain, it is expected that the power equipment sector will continue to be in a high prosperity cycle, and the second half of this year will enter a stage of performance and order resonance.