During the morning session on the 27th, the power sector experienced a strong upward surge, with multiple stocks hitting consecutive daily limit-ups. YUNENG Holdings recorded seven consecutive limit-ups, GANNENG Shares achieved three, and HUAYIN Power notched two. Other notable gainers included FULING Power, GANSU Energy, JINKAI New Energy, and JINKO Solar, each rising over 5%.
Among popular ETFs, the Huabao Power ETF (159146) saw heavy trading volume and climbed more than 1.5%, reaching a new record high since its listing. The ETF is also on track for its fourth consecutive daily gain.
According to Cao Xuchen, the fund manager of Huabao Power ETF (159146), the power sector’s strong performance after the Spring Festival has been driven less by fundamental factors and more by what is termed "HALO trading." This refers to the idea that, as AI technology advances, software and other light-asset companies may become more easily replaceable, while physical assets like energy and power remain indispensable. Furthermore, the growth of AI is expected to continuously increase electricity demand, making power assets a defensive investment play amid the AI boom.
To capture opportunities in the AI-energy nexus, investors may consider the Huabao Power ETF (159146). The underlying index focuses on the power utilities sector, offering diversified exposure to thermal, hydro, wind, nuclear, and solar power. The sector combines both dividend and growth characteristics, with a high concentration of leading power companies. It is well-positioned to benefit from the expansion of AI computing power and policy incentives from power sector reforms, providing a convenient way to tap into the industry’s growth potential.
Risk warning: The Huabao Power ETF passively tracks the CSI All Share Power Utilities Index, which has a base date of December 31, 2004, and was launched on July 15, 2013. The composition of the index is adjusted periodically according to its methodology, and past performance does not indicate future results. The mention of individual stocks is for illustrative purposes only and does not constitute investment advice or reflect the holdings or trading activities of the fund manager. The fund manager has rated this fund as R3-medium risk, suitable for aggressive (C3) or higher risk-rated investors. Suitability assessments should be confirmed with the sales institution. All information provided is for reference only, and investors are responsible for their own investment decisions. The views, analysis, and forecasts presented do not constitute investment advice, and no liability is accepted for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance is not indicative of future returns, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest with caution.
MACD golden cross signals have formed, indicating favorable momentum for several stocks.