If investors shift their gaze away from the technology stocks that have been adjusting recently, they will notice the power sector quietly gaining momentum.
Recently, power ETFs have seen enthusiastic subscriptions, with funds flowing in for over ten consecutive trading days, indicating a warming preference for the power sector among capital.
Faced with the sustained structural trends in the power sector, one might wonder: in a market narrative dominated by tech stocks, why is power repeatedly active? If the market focused more on upstream equipment manufacturing like photovoltaics and wind power in past years, then as the industry cycle evolves, are power operators covering wind, solar, hydro, thermal, and nuclear now stepping into the spotlight?
Three-Fold Logic Convergence: Power Sector Poised for Value Reassessment
In the short term, electricity consumption anxiety brought by El Niño provides an emotional backdrop for the market.
China officially entered an El Niño state in May, which is expected to develop into a moderate or stronger event.
High temperatures and a surge in cooling load have traditionally been catalysts for market attention on the power sector—the power load of the Southern Grid has hit new highs for four consecutive days, up 7.24% from last year's peak load.
Looking beyond short-term trends, the long-term logic of the power sector points to a more fundamental asset reassessment—it is evolving from "energy infrastructure" to "hard currency in the digital economy era."
First, a structural qualitative change is occurring on the demand side.
The rapid expansion of the AI computing power industry is generating significant incremental electricity demand.
In 2026, "computing-power synergy" was included for the first time in the government work report, and four departments jointly issued an action plan deploying 29 key tasks.
The National Energy Administration estimates that during the "16th Five-Year Plan" period, national electricity consumption for computing power will increase by an average of over 100 billion kilowatt-hours annually, reaching about 800 billion kilowatt-hours by 2030, accounting for approximately 6% of total societal electricity consumption.
When computing power becomes the new productive force, electricity is no longer merely an industrial fuel but the physical carrier of computing power.
Second, there is a substantive improvement in the supply-demand structure.
In 2026, coal price trends reversed, with Qinhuangdao Q5500 thermal coal reaching 860 yuan per ton, up 178 yuan per ton from the beginning of the year.
In the second quarter, market-based transaction electricity prices rose significantly in many regions, with prices in Guangdong in May and June far exceeding annual long-term agreements.
Guosheng Securities believes that an electricity price inflection point may have arrived, and the foundational demand for thermal power has further strengthened.
Additionally, favorable policies continue to be released.
Provinces are steadily advancing power market reforms, the first large-scale "computing-power synergy" project has commenced operation in Ningxia, and projects in Inner Mongolia, Xinjiang, and elsewhere are being implemented intensively.
The asset value of power operators represented by hydro, wind, solar, thermal, and nuclear power is being repriced by the market.
Founder Securities believes that the profit bottom for thermal power is gradually becoming clear, and the dual benefits of "abundant water inflow + resilient electricity prices" for hydropower are being realized.
Guosheng Securities points out that the improvement in the power supply-demand structure is sustainable, highlighting the foundational value of thermal power.
Changjiang Securities states that if El Niño recreates a tense situation, it will benefit the electricity price levels for thermal power, nuclear power, and exported hydropower.
How to Position? GF Power ETF (159611) Offers a One-Click Investment Solution
Under the convergence of the above logics, the GF Power ETF (159611) provides investors with a convenient tool for one-click allocation across various power subsectors.
The fund tracks the CSI All Share Power Utilities Index, covering thermal, hydro, wind, nuclear, and solar power, aiming to tap into the growth potential of clean energy while relying on the high dividends and stable cash flow of traditional power leaders to smooth volatility.
Looking at the index characteristics, a key feature of the CSI All Share Power Utilities Index is its "broad coverage," as any listed enterprise classified under "power utilities" can be included, helping to present a complete picture of the power sector.
As of June 8, 2026, the index comprises 57 constituent stocks.
Top holdings include leading companies such as China Yangtze Power Co., Ltd., China National Nuclear Power Co., Ltd., China Three Gorges Renewables (Group) Co., Ltd., China Energy Investment Corporation, Yongtai Energy Co., Ltd., Huaneng Power International, Inc., China General Nuclear Power Corporation, SDIC Power Holdings Co., Ltd., Datang International Power Generation Co., Ltd., and Shanghai Electric Power Co., Ltd., with the top ten constituents having a combined weight of approximately 45%.
In terms of sector allocation, utilities account for as high as 91.64%, significantly concentrated in the core segments of the power generation industry chain. (For illustrative purposes only; does not constitute investment advice; may adjust based on index methodology and market conditions.)
In terms of performance, as of June 8, 2026, the GF Power ETF (159611) had an asset size of 10.984 billion yuan, rising 11.45% over the past six months, significantly outperforming the CSI 300's 1.99%.
Its net value growth rate over the past year was 18.31%, and over the past three years was 23.51%.
On the capital flow front, the fund saw cumulative net inflows of 4.072 billion yuan over the past three weeks, with average daily turnover exceeding 1 billion yuan, indicating that even in a volatile and diverging broader market, professional capital is actively positioning in this sector with both defensive and growth attributes. (Data source: Wind, as of June 8, 2026; the past three weeks period: May 18, 2026 to June 8, 2026; past index performance does not predict future performance; past fund size does not predict future.)
Overall, under the resonance of multiple factors including AI computing power demand expansion, supply-demand structure improvement, and summer peak electricity consumption from El Niño, the prosperity baseline of the power sector is rising.
The GF Power ETF (159611) covers the wind, solar, hydro, thermal, and nuclear power chain, providing a convenient tool for positioning in the power sector's high-growth cycle and is worth watching.
Investors in the over-the-counter market can also consider the feeder fund products, GF CSI All Share Power Utilities ETF Feeder Fund A/C (016185/016186).
Data source: Wind, as of June 8, 2026. The GF Power ETF (159611) net value growth rates and benchmark growth rates for the past five years were -13.66%/-16.39% (2022), 0.54%/-0.98% (2023), 13.91%/11.86% (2024), 0.92%/-1.28% (2025), and 14.61%/-0.26% (2026, as of June 8).
The sales fees for the GF Power ETF are as follows: when subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission not exceeding 0.50%; on-exchange trading fees are subject to the actual charges by securities companies.
Fee explanation for the GF CSI All Share Power ETF Feeder Fund: The feeder fund is divided into Class A and Class C shares. Class A shares charge subscription fees but do not deduct a sales service fee from the fund assets; Class C shares do not charge subscription fees but deduct a sales service fee from the fund assets at an annual rate of 0.30%.
The subscription amount (M) and subscription fee rates for Class A shares are as follows: M < 1 million yuan: 1.20%; 1 million yuan ≤ M < 5 million yuan: 0.80%; M ≥ 5 million yuan: 1,000 yuan per transaction.
The holding period (D) and redemption fee rates for Class A shares are as follows: D < 7 days: 1.50%; 7 days ≤ D < 30 days: 0.50%; D ≥ 30 days: 0.00%.
The holding period (D) and redemption fee rates for Class C shares are as follows: D < 7 days: 1.50%; D ≥ 7 days: 0.00%.
For details, please refer to legal documents such as the prospectus and fund announcements.
Risk Warning: The aforementioned funds invest in securities markets. Before investing, investors must fully understand the product characteristics of these funds and bear all types of risks arising from fund investments.
These funds are issued and managed by GF Fund Management Co., Ltd., and selling agents do not bear responsibility for the investment and redemption of the products.
Please read the fund contracts, prospectuses, and other legal documents carefully before investing to fully understand the details and risk characteristics of these funds.
The aforementioned are equity funds, with risks and returns higher than those of hybrid funds, bond funds, and money market funds; the specific risk rating results are based on the ratings provided by the fund manager and selling institutions.
Investors should choose products that match their risk tolerance and investment objectives. Funds carry risks, and investment requires caution.
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