Chinese electric power companies rally as power use surge amid widespread heatwave

 

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Shares of Chinese electric power companies and power generation equipment companies are rallying as the country’s electricity consumption spikes during a widespread heatwave.

In Hong Kong, Huadian Power is surging 4.7% as of 10:14 am local time, China Resources Power up 4.3%, Huangnent Power up 3.5%, Datang Power up 2.8%. In mainland China, the indexes tracking the power generation equipment makers is surging about 4%, making it the best-performing sector in the A-share market.

Southwest China’s Sichuan province has launched level-three alert for power shortage, the third highest in the current system, and will make an all-out effort to ensure power supply to residential users, reported news outlet The Paper, citing a meeting held by Sichuan authority on Monday.

Power supply situation in Sichuan has become more severe and the region is now facing “double shortage” in both power load and power supply volume, the local authority said at the meeting. Peak power load is expected to rise by 25% from that in 2021 and it’s going through the most difficult phase for power supply, it said.

China’s meteorological authorities have issued high temperature alerts for 25 consecutive days, and experts believe the country is experiencing the strongest heatwave in six decades. Read more …

Several Chinese regions restrict industrial power use as power supply tightens amid the heatwave. Read more …