CITIC Securities: High demand for electricity, improving marginal output of wind and solar power.

According to the report from CITIC Securities, the month-on-month growth rate of electricity consumption in May increased to 6.9%. High growth in exports and steady growth in electricity consumption in the manufacturing industry together drove the demand for electricity to remain high. Investment in the power generation side continued to differentiate, with high growth in nuclear power and wind power, while the newly installed capacity of photovoltaics decreased by 70% year-on-year due to the high base effect; investment in the power grid side maintained a high growth rate. The hours of wind and solar utilization showed a significant improvement month-on-month, possibly mainly due to improved wind and solar resource conditions. Monthly electricity prices in major coastal provinces such as Guangdong and Jiangsu continued to rise in July.