Power Stocks Surge in Afternoon Trading as Peak Summer Demand Drives Record Electricity Loads

Power sector stocks extended their gains during the afternoon trading session.

At the time of writing, shares of Datang Power (00991) were up 4.24% at HK$2.46. China Longyuan (00916) shares advanced 3.97% to HK$5.50. China Power (02380) rose 3.28% to HK$2.83, while Huaneng Power (00902) gained 3.28% to HK$5.98.

On the news front, the national electricity load reached a new high of 1.551 billion kilowatts on July 14th. Several regional and provincial grids, including Central China, South Hebei, Sichuan, Hubei, and Hunan, saw their electricity loads break historical records.

The National Development and Reform Commission forecasts that the peak national electricity load this summer will reach approximately 1.6 billion kilowatts, representing an increase of around 90 million kilowatts compared to last year. The China Electricity Council projects that total electricity consumption for the whole society will grow by 5% to 6% year-on-year in 2026.

Analysis indicates that July and August remain the critical period for managing the peak summer electricity demand. If high temperatures persist, residential cooling demand and commercial loads are expected to rebound. Concurrently, high activity in industrial production, electric vehicle charging and swapping, and data center loads will continue to provide underlying support.

The outlook for the power sector's prosperity should still be grounded in the main theme of "stable total volume and structural upgrades."