HK Stock Market Move | Nuclear power concept stocks collectively surged as China approved the construction of eight nuclear power units. The entire industry chain is expected to enter a high prosperity cycle.

Nuclear power concept stocks have collectively risen. As of the time of publication, CGN MINING (01164) is up 4.55% at HKD 2.53; CNNC INT'L (02302) is up 3.49% at HKD 4.15; CGN POWER (01816) is up 2.77% at HKD 2.97. On the news front, on July 31st, the State Council's executive meeting reviewed and approved the construction of 8 nuclear power units. The approved nuclear power projects include four projects totaling 8 units, specifically: 2 units for the second phase of the China National Nuclear Corporation's (CNNC) Jin Qimen Nuclear Power project in Zhejiang, 2 units for the first phase of the Dalian Zhaohe Nuclear Power project in Liaoning, 2 units for the third phase of the CGN's Taipingling Nuclear Power project in Guangdong, and 2 units for the first phase of the State Nuclear Power Technology Corporation's Laiyang Nuclear Power project in Shandong. It is estimated that the total investment for these newly approved projects will exceed 170 billion yuan. Among them, the Jin Qimen Nuclear Power units 3 and 4, and the Taipingling Nuclear Power units 5 and 6 will adopt the "Hualong One" technology fusion plan version 2.0. Caitong believes that the approval of these 8 nuclear power units confirms the trend of large-scale and normalized construction of nuclear power during the 14th Five-Year Plan period, and the medium- to long-term outlook for the sector is continuously strengthening in terms of prosperity and growth certainty. CMSC pointed out that this year, the first batch of 8 units in China still has the possibility of a second batch of approvals within the year, with hopes of maintaining a normalized approval pace of over 10 units, and the entire nuclear power industry chain is expected to enter a high prosperity cycle. In the long term, they are optimistic about the investment value of nuclear power operators. They recommend investors pay attention to China National Nuclear Power, which is expected to reach its peak production faster, while also suggesting to focus on CGN POWER, which offers valuation and dividend advantages in the Hong Kong market.