Two Major Power Grids See Year-Opening Investment Growth Exceeding 80% and 95%; EFunds Power Grid Equipment ETF (560390) Attracts Over 450 Million in Consecutive 4-Day "Capital Inflow"

As of 9:33, the Hang Seng A-Share Power Grid Equipment Index (HSCAUPG.HI) fell 0.78%. Among the heavyweight stocks, Sungrow Power Supply rose 0.02%, TBEA Co. Ltd. fell 0.14%, China Southern Power Grid Co. Ltd. declined 0.35%, Hengtong Optoelectronics dropped 3.28%, Zhongtian Technology decreased 2.76%, Hongfa Holdings fell 0.17%, China XD Electric declined 0.63%, Jingda Co. Ltd. rose 0.28%, Jinpan Technology dropped 1.99%, and Oriental Cable increased 1.97%. As of March 16, the Hang Seng A-Share Power Grid Equipment Index has increased 118.2% over the past year.

The Power Grid Equipment ETF from E Fund (560390) has been favored by funds since its listing, with net inflows for four consecutive days totaling over 450 million yuan, and nearly 950 million yuan in the past 10 days. The latest fund size reaches 1.324 billion yuan.

In terms of news, State Grid Corporation of China stated that the company is accelerating the construction of power grids at all levels, with fixed asset investment showing a significant acceleration. Data shows that from January to February this year, the company completed a total fixed asset investment of 75.7 billion yuan, an increase of 80.6% year-on-year. The supporting capacity of the power grid and the investment-driven effects continue to strengthen. Meanwhile, the “Eight Crosses and Four Direct” ultra-high voltage projects under construction, along with related flexible interconnection projects and 37 pumped storage power stations, are progressing as planned. Investment growth of China Southern Power Grid also remains high. In the first two months, the company completed fixed asset investments of 25.08 billion yuan, up 95.3% year-on-year.

CITIC Securities believes that dual carbon goals and the construction of new power systems will remain the main themes throughout the 14th Five-Year Plan. On one hand, a large number of ultra-high voltage projects being approved or planned will solidify expectations for the construction and development of major ultra-high voltage projects. On the other hand, with AI development continuously boosting electricity demand and the global cycle of power equipment upgrades, new business models such as computing and electricity collaboration are actively explored. It is recommended to focus on leading equipment companies related to major domestic demand projects and enterprises involved in the development of digital grids and computing-electrical collaboration technologies.

The E Fund Power Grid Equipment ETF (560390) closely tracks the Hang Seng A-Share Power Grid Equipment Index. The top three industry allocations are: Transmission and transformation equipment (47.1%), Power electronics and automation (23.6%), and Cables (11.1%). The top five heavyweight stocks—TBEA Co. Ltd., Sungrow Power Supply, China Southern Power Grid, Zhongtian Technology, and Hengtong Optoelectronics—together account for 40.7%, highlighting the strong leading position and index advantage of industry leaders in the power grid sector.

Under multiple factors resonating, the power grid equipment sector is experiencing a historic opportunity. The Power Grid Equipment ETF from E Fund (560390) provides an efficient tool to capitalize on the high-growth trend of this sector, making it worth long-term attention.

(Edited by: He Chong)

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