HK Stock Market Move | Power equipment stocks lead the decline, with Dongfang Electric Corporation (01072) falling nearly 10%. Rising oil and gas prices may suppress demand for gas turbines.

The decline in the stock prices of electric power equipment leads the way. As of the time of writing, Dongfang Electric Corporation (01072) fell by 9.77% to HK$26.42; HARBIN ELECTRIC (01133) fell by 7.17% to HK$16.19; Weichai Power (02338) fell by 6.52% to HK$34.42; CHONGQING M&E (02722) fell by 2.59% to HK$2.63. On the news front, the global AI computing power infrastructure expansion, exacerbation of power grid bottlenecks, and the improvement of A-level data center power supply standards are driving the diesel generator set industry into a new round of demand expansion cycle. In some regions of North America, customers mainly use diesel generator sets as their main power source. The continuous increase in international oil and gas prices may substantially suppress the demand for gas turbines. It is worth noting that the position of diesel generator sets as backup power sources is unshakable. Currently, the proportion of gas generator sets in the overall power supply structure is still relatively low, with some regions in North America primarily using diesel generator sets as the main power source. With the lower cost of gas generator sets, customers are now more inclined to choose gas generator sets for power supply.