Chinese electricity companies resume gains on rising power use amid widespread heatwaves 

 

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Shares of Chinese electric power companies are trading higher on Wednesday after corrections one day earlier driven by rising electricity consumption amid widespread heatwaves. Datang Power is trading 2% higher in Hong Kong, China Resources Power up almost 2%, Huaneng Power up 1.7% and China Power up over 1%.

A new round of high temperature weather will hit northern China starting June 27, according to the China Meteorological Administration. Read more …

In addition, China’s peak power load this year will reach about 1.37 billion kW under normal weather conditions, an increase of about 80 million kW from last year, and if there is a long period of extreme weather, the maximum load may increase by about 100 million kilowatts compared to last year, said the China Electricity Council (CEC), the country’s largest electricity industry body. Read more …

TF Securities said in a note that, due to the tight power supply during the peak summer season, electricity transaction prices are expected to rise in the third quarter of the year.