Power stocks experienced a broad decline, with Huaneng Power (00902) down 5.26% to HK$5.4, CHINA RES POWER (00836) falling 3.48% to HK$17.18, and HUADIAN POWER (01071) dropping 2.91% to HK$4.01 at the time of writing. On the news front, on January 30th, the National Development and Reform Commission and the National Energy Administration jointly issued the "Notice on Improving the Capacity Pricing Mechanism on the Generation Side," which mentioned "categorically improving the capacity pricing mechanism for coal power, natural gas power, pumped storage, and new energy storage, and optimizing the electricity market mechanism." CITIC Securities noted that the "Notice" clarifies that after the improvement of the coal power capacity pricing mechanism, local authorities can appropriately adjust the lower limit for medium- to long-term market transaction prices for coal power within the province based on factors such as electricity market supply and demand and the variable costs of all participating units, and can appropriately relax the requirements for the proportion of medium- to long-term coal power contracts signed. Concurrently, the "Notice" encourages both supply and demand sides to enter into contracts with flexible pricing mechanisms. The opening of the lower limit for coal power transactions is believed to potentially lead to a further decline in the electricity price benchmark in some provinces.