Movement Alert|HUANENG POWER Rises 3.02% in Regular Trading, Computing-Power-Electricity Coordination Policy Catalyzes Sector Underweight Repair

Market Focus
Jul 29

On July 29, HUANENG POWER rose 3.02% in regular trading, trading at HKD 6.14/share, with turnover of HKD 116 million.

On the news front, the computing-power-electricity coordination policy continues to catalyze the power sector. The policy explicitly supports coordinated deployment of computing infrastructure with renewable energy and green electricity direct supply, encouraging zero-carbon industrial parks to implement green electricity direct connection. Green power operators are expected to achieve earnings and valuation uplift through new business models, potentially establishing a second growth curve by entering the computing power domain.

Meanwhile, a utilities sector research report highlighted that power sector mutual fund holdings accounted for only 0.21% at the end of Q2, far below the sector's 2.43% market capitalization weight, indicating a significantly underweight position. With electricity price uptrend confirmed, the sector is seen as offering both offensive and defensive attributes. Among peers, China Power rose 3.3%, Datang Power rose 2.0%, and China Resources Power rose 1.15%.

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