The power sector continued its strong performance during early trading today, maintaining the positive momentum seen after the Lunar New Year holiday. Besides the optimistic industry signals from the State Grid's ten new measures to support high-quality development of new energy during the 15th Five-Year Plan period, two additional factors are reinforcing the investment appeal of power-related assets: the globally popular "HALO trade" strategy and new data showing China's AI model token usage surpassing that of the United States for the first time.
The HALO trade strategy suggests that AI technology is disrupting asset-light industries such as software and IT services, leading market capital to gradually shift toward physical assets with high entry barriers and lower susceptibility to technological obsolescence. This trend has partly driven increased demand for tangible assets like electric power. Meanwhile, according to OpenRouter data, token usage by Chinese AI models reached 4.12 trillion during the second week of February, exceeding U.S. usage for the first time. As electricity represents a fundamental "hard cost," the sector is expected to expand rapidly amid rising AI-related demand.
Bolstered by growing investment interest in power and grid-related segments, the trading activity of the Power ETF (561560) has risen notably in recent sessions. As of 11:00 today, its intraday turnover had exceeded 1.6 billion yuan, significantly higher than its year-to-date daily average of 0.68 billion yuan. Wind data further indicate that as of February 27, 2026, the Power ETF (561560) attracted net inflows totaling 1.97 billion yuan over three trading days, driving both its fund size and share count to record highs of over 11.39 billion yuan and 862 million shares, respectively.
The Power ETF (561560) is the first ETF in the market tracking the CSI All Share Power Utilities Index. The underlying index is entirely composed of power and grid companies, covering 57 constituent stocks across thermal, hydro, wind, nuclear, and solar power generation, as well as grid operations. This high level of sector concentration allows the fund to fully capture investment opportunities within China’s energy and power system.
The fund manager of the Power ETF (561560), Huatai-PineBridge Fund, is one of China’s earliest ETF management firms. It has long been committed to offering investors transparent, easily tradable, and low-cost index-tracking products. Two of its flagship ETFs—the Huatai-PineBridge SSE 300 ETF (510300) and the Huatai-PineBridge A500 ETF (563360)—are highly popular in the market and currently rank as the largest ETFs in their respective categories. Their management fee and custody fee stand at 0.15% and 0.05% per annum, respectively, among the lowest tiers for equity index funds in the market.
A golden cross signal has formed in MACD indicators, indicating favorable momentum for several stocks in the sector.