At the beginning of 2026, Elon Musk's comments that "the future of currency is essentially the watt" ignited the tech sphere, and he further asserted that China, leveraging its power advantages and chip breakthroughs, is poised to "lead the pack" in the field of AI computing power.
Spurred by this, since January, A-share sectors related to AI energy, such as power, liquid cooling, and grid equipment, have delivered impressive performances. Against this backdrop, the timely listing of the Huabao Power ETF (159146) today (January 20) reflects a promising momentum, aptly described as "riding the favorable wind." Market analysts also point out that the sectors that typically shine during the A-share "spring rally" in the first quarter often have a significant probability of being closely related to the main market trends for the entire year.
The Huabao Power ETF (159146) was officially established on January 12, 2026, and swiftly followed up with its listing for trading today (January 20, 2026). The ETF's objective is very clear—to capture AI-related energy opportunities and essentially "power" AI! It is understood that the Huabao Power ETF (159146) tracks the CSI All Share Power Utilities Index (H30199.CSI). Through a diversified portfolio of constituent stocks spanning "thermal, hydro, wind, nuclear, and solar" power, it aims to help investors strategically achieve a "comprehensive power portfolio, balanced for both offense and defense" in the great AI era.
Looking at the underlying index, the Huabao Power ETF (159146) distinctly exhibits characteristics of being "a gathering of industry leaders, brimming with power potential."
The underlying index for the Huabao Power ETF (159146) is the CSI All Share Power Utilities Index, which focuses on the "Utilities - Power" sector. Its sample space consists of the constituents of the CSI All Share Index, with a principle cap of 10% for the weight of any single constituent. As of December 31, 2025, the index comprised 57 constituent stocks. Viewed from the perspective of different power generation types, it presents a "comprehensive power layout" pattern: "41% thermal power + 23% green power + 25% hydropower + 12% nuclear power," fully capturing the diverse range of investment targets and opportunities within China's energy and power system. Furthermore, the index's top ten weighted stocks are predominantly industry leaders like China Yangtze Power, China National Nuclear Power, China Three Gorges Renewables, and China Energy Investment Corporation. As of December 31, 2025, the combined weight of its top ten constituents reached 52.07%, allowing the index to benefit from the representative strength of industry leaders and form strong investment resilience, while also enabling portfolio diversification and effective risk management.
Musk's narrative in a podcast interview at the beginning of 2026 left a deep impression on the market. He repeatedly emphasized that "as artificial intelligence, energy, and space systems grow exponentially, the real bottleneck is 'electricity generation'," "data centers must be equipped with power plants with sufficient capacity," and that "China possesses a very robust power system," fully affirming that power advantages will provide strong support for the development of China's AI computing capabilities.
The rapid development of artificial intelligence leads to computing power expansion—this drives data center expansion, which consumes vast amounts of electricity—resulting in tight power supply, continuously rising power demand, and an urgent need for grid construction and upgrades. This is the scenario currently unfolding in regions like Europe and the United States. Data from both the International Energy Agency and BloombergNEF also indicate that AI-driven data center electricity demand is growing at an exponential rate, ushering in new development opportunities for the power industry.
Within the current A-share market, the significant value of the precious resources that power companies possess in the AI era is also coming to light. The strong demand from data centers is expected to foster a new growth pole for the power sector. Given its promising future growth prospects, the power sector is considered by some institutions as potentially undergoing a valuation shift from cyclical to growth-oriented.
A recent report from Huatai Securities points out that AI will bring about a global super-cycle for electricity, while power infrastructure constraints are also expected to be a future main trend. The report notes that states like Virginia in the US, which have a high concentration of data centers, are already experiencing a widening peak power deficit in their electrical systems*. The report also analyzes that, beyond AI, as the penetration rate of new energy sources within the power system increases, the technical bottlenecks for grid integration need urgent resolution. This, in turn, will酝酿 (brew) a new round of opportunities in power/grid sectors, with investment prospects potentially extending further to areas like energy storage.
This perhaps signifies that, under the dual main trends of AI plus energy transition, the chain of power-grid-energy storage will also constitute a strategic-level opportunity attracting global investment market attention. A-share investors can适时 (timely) focus on the Huabao Power ETF (159146). By utilizing such high-quality sector/thematic ETF tools, starting with close exposure to "power," they may gradually delve deeper into participating in this sweeping global energy opportunity.
Beyond the macro trends, the advantages of the A-share power sector—such as stable profitability, low valuation, and positive industry development—are also drawing investor attention.
On one hand, as a fundamental utility industry, power demand is less affected by economic cycle fluctuations on the demand side. Enterprises within the power sector, particularly in hydropower and nuclear power, often exhibit stable profits and cash flows, along with high dividend payout ratios. This often makes the power sector stand out as a "safe harbor" during market style rotations. On the other hand, the valuation of the CSI All Share Power Utilities Index is currently at a low level, with its trailing price-to-earnings ratio (PE-TTM) lower than most of its valuation levels over the past decade*, also providing a certain margin of safety.
ETF fund fee-related information: When investors subscribe for or redeem fund shares, subscription/redemption agents may charge a commission of up to 0.5%. Trading fees for on-exchange transactions are subject to the rates actually charged by securities firms. No sales service fee is charged. Risk提示 (Prompt):
The fund's past performance does not predict its future results. Fund investment involves risks! The fund manager assesses this fund's risk等级 (level) as R3-Medium risk, suitable for Balanced (C3) and above investors.
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