Power stocks continued their ascent. At the time of writing, **HUADIAN POWER (01071)** was up 7.32% at HKD 4.85. **HUANENG POWER (00902)** rose 3.44% to HKD 7.52. **CHINA RES POWER (00836)** gained 3.1%, trading at HKD 21.92. **CHINA POWER (02380)** increased by 2.15% to HKD 3.8.

The rally is supported by news that from May 25th to 28th, driven by robust economic activity and hot, humid weather, the electricity load in Southern China set new historical highs for four consecutive days. The peak load surged by approximately 39 gigawatts over four days, reaching 275 gigawatts, marking an increase of 18.58 gigawatts or 7.24% compared to last year's peak. The onset of high temperatures in southern regions arrived significantly earlier this year, with many areas entering summer over 20 days sooner than usual.

Analysts at Changjiang Securities have pointed out that projections indicate power supply-demand tensions in 2026 could surpass the levels seen in 2022. Influenced by rising primary energy costs and tightening supply-demand dynamics, spot electricity prices are sending strong signals, particularly with notable increases in coastal spot prices, which are further driving a recovery in monthly contracted prices.

As the nation progressively enters the peak summer power consumption period, and considering the potential for prolonged periods of extreme heat and humidity due to El Niño conditions, the cycle of electricity price increases is expected to accelerate. This outlook reinforces a positive view on the power sector's new cycle of simultaneous growth in both volume and price.