HK Stock Market Move | Electricity stocks continue to rise. Electricity load in the southern region has reached a historical high for four consecutive days. Spot electricity prices in coastal areas have significantly increased.

Electricity stocks continue to rise. As of the time of writing, Huadian Power International Corporation (01071) has risen by 7.32% to 4.85 Hong Kong dollars; Huaneng Power International, Inc. (00902) has risen by 3.44% to 7.52 Hong Kong dollars; CHINA RES POWER (00836) has risen by 3.1% to 21.92 Hong Kong dollars; CHINA POWER (02380) has risen by 2.15% to 3.8 Hong Kong dollars. In terms of news, from May 25th to 28th, the continuous improvement in the economy and the resonance of high temperatures and high humidity have driven the electricity load in the southern region to reach a historical high for four consecutive days. The maximum load has rapidly increased by about 39 million kilowatts within four days, reaching 275 million kilowatts, an increase of 18.58 million kilowatts or 7.24% compared to the highest value last year. The high temperature weather in the southern region has arrived significantly early, with many places entering summer more than 20 days earlier than usual. Changjiang pointed out that the supply and demand could be tight or exceed the level of 2022 by 2026. Under the joint impact of rising energy prices and a tightening supply and demand situation, the spot electricity prices have sent a strong signal, especially the significant increase in spot electricity prices in coastal areas, further driving the monthly electricity price to rise. As the country gradually enters the peak period of summer electricity consumption, and considering the sauna-like weather under the El Nino climate, the electricity price increase cycle will accelerate, firmly believing in the new round of quantity and price increase opportunities in the electricity sector.