Power grid equipment collectively gains strength, with Power Grid Equipment ETF, Power Grid ETF, and Power Grid Equipment ETF all rising over 3% on GF.

Today, the three major A-share indices all closed higher, with the ChiNext Index and the STAR 50 Index both rising over 1%. The large and small cap indices showed divergence, with the micro-cap stock index falling more than 1%. The combined trading volume of the Shanghai and Shenzhen markets reached 2.14 trillion yuan, an increase of 157.5 billion yuan compared to the previous trading day. Over 3,200 stocks in the entire market declined.

The concept of power grid equipment collectively strengthened, with Siyuan Electric and Sifang Co., Ltd. both hitting new highs, driving the power grid equipment ETF, power grid ETF, and power grid equipment ETF to rise over 3%.

The power grid equipment ETF focuses on the power equipment sector, covering subfields such as transmission and transformation equipment, ultra-high voltage industry, and smart grid construction. It allows for quick capture of growth opportunities in new power system construction and power reform. The top ten weighted stocks include industry leaders such as State Power Investment Corporation NARI, Siyuan Electric, TBEA, and China Electronics Technology Group.

The power grid ETF tracks the Hang Seng A-Share Power Grid Equipment Index, with key holdings including TBEA, Siyuan Electric, and State Power Investment Corporation NARI. It covers leading companies in transmission and transformation equipment, power grid automation equipment, communication cables, and supporting sectors.

On the news front, the “Implementation Opinions on Improving the National Unified Power Market System” proposes to open market-based trading channels between State Grid and China Southern Power Grid operating areas, unify trading organization methods, promote information exchange, and accelerate the normalization of cross-operating area transactions. It aims to build more capable and rationally flowing transmission channels and main grid structures, continuously increase cross-provincial and cross-regional transmission scale, and enhance clean energy delivery. Under safety guarantees, it will scientifically plan cross-provincial and cross-regional power generation priorities, reasonably expand inter-provincial market-based power transmission, and strengthen multi-channel centralized optimization. The integrated construction and operation of the Southern Power Market will be promoted, with improvements to the Yangtze River Delta power interconnection, and exploration of synchronized intra-regional power exchange within the framework of inter-provincial transactions.

The State Grid Corporation announced that during the 14th Five-Year Plan, fixed asset investment will reach 4 trillion yuan, a 40% increase over the 14th Five-Year Plan. Meanwhile, explosive growth in AI computing power has triggered global “power anxiety.”

Additionally, urgent upgrades are needed for power grids in Europe and the United States, with delivery cycles already scheduled for 2030, opening a golden window for Chinese power equipment companies to expand overseas.

Huitianfu Fund believes that not only is the US likely to face power shortages due to the rapid development of AI, but “power shortages” may also spread globally, occurring in different regions, forms, and degrees. This could lead to a significant and prolonged boom in the global power grid industry, creating gaps in the trillion-dollar global power grid equipment market. Chinese power grid equipment companies going abroad are entering a harvest period and may produce world-class power grid equipment firms. This is a high-barrier sector with the potential to nurture century-old growth stocks.

Founder Securities believes that domestically, during the 15th Five-Year Plan, power grid investment will accelerate, with a focus on ultra-high voltage, distribution networks, and digital intelligence. The State Grid’s announced investment plan of over 4 trillion yuan exceeds market expectations. Based on the actual situation of the 14th Five-Year Plan, future guidance may be raised or actual completion may surpass expectations, boosting the power grid’s prosperity. The expected investment proportions are approximately 35% in ultra-high voltage, 40% in distribution networks, and 10% in digital intelligence. Overseas, new and replacement demands jointly drive growth, with broad demand in Europe and the US. Accelerated data center construction in the US has led to a surge in electricity consumption, making power equipment a core bottleneck for AI development. Many US power grids were built in the 1950s-70s and are aging, entering replacement cycles. Europe’s high growth in renewable energy installations stimulates supporting power grid demand, and the vigorous upgrade and renovation needs further drive the demand for power equipment.