Chinese thermal power companies trade higher on expectation of tariff reform, higher profit
Chinese thermal power companies trade higher on expectation of tariff reform, higher profit

Chinese thermal power companies trade higher on expectation of tariff reform, higher profit

 

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Shares of Chines thermal power companies are trading higher , with Huadian Power and Huaneng Power up more than 2% in Hong Kong, China Resources Power up nearly 2%, China Power up 1.3%, China Longyuan up 2.3, Datang Power and China Power up more than 1%.

In the A-share market, an index tracking the thermal power companies compiled by Wind Information up 0.7%, making it one of the best-performing sectors, compared to 0.1% drop for the benchmark Shanghai Composite Index.

China will introduce a policy to reform thermal power tariff within the year, and companies in the sector are expected to be able to enhance profits, reported state-backed media Securities Times.

Some provinces in China have implemented the tariff policy, but due to the differences in energy structure and power supply and demand in different regions, the tariff policy varies to a certain extent, the report said.

Industry sources expected that more provinces will introduce capacity tariff policies in the future, and the overall valuation of the thermal power sector is expected to rise.

chinese thermal power companies