On Thursday (October 29), the dividend defensive style strengthened, and the power sector rose against the broader market trend! Among popular ETFs, the underlying index of Power ETF Huabao (159146), which covers the full energy mix of "wind, solar, hydro, thermal, and nuclear," closed up 1% against the market trend.
Among them, the nuclear power sector stood out, with China General Nuclear Power Corporation (ASX: CGN) rising more than 7% and China National Nuclear Power (ASX: CNN) gaining nearly 3%; thermal power and hydropower were also active, with Baoxin Energy (ASX: BXN) up more than 5%, Guiguan Electric Power (ASX: GGP) up more than 3%, and Huaneng Mengdian (ASX: HMD), Huaneng Power International (ASX: HPI), GD Power Development (ASX: GDP), SDIC Power Holdings (ASX: SDIC), China Yangtze Power (ASX: CYP), and Shaanxi Energy (ASX: SXE) among many stocks rising more than 2%.
The active performance of the power sector was mainly driven by two factors:
First, expectations for improved fundamentals, resilient electricity demand, and new demand from AI computing power have strengthened market expectations for a tighter power supply-demand balance and room for electricity price recovery, reinforcing the logic of an industry profit turning point.
Second, the sector's low valuation and defensive attributes stand out. The sector's valuation is at a historically low level, and thermal power and hydropower offer dividend and cash flow advantages, providing some defensive appeal to funds in the current market environment.
In terms of performance, nuclear power led the gains, and strong third-quarter reports may have been the direct trigger. China General Nuclear Power Corporation (ASX: CGN) saw net profit grow 12.7% in the first three quarters, significantly outpacing the Shenwan power sector's -13.3%.
Support came from both volume and price: newly commissioned units drove on-grid electricity up 2.65%, while mechanism-based electricity prices protected profitability; if mechanism-based electricity prices in Liaoning and Guangxi are promoted, it would boost leading companies' performance. Nuclear power has become a high-certainty beneficiary after the electricity price reversal, and re-pricing by funds could drive the sector to an independent market performance.
Power ETF Huabao (159146) and its feeder fund (code: 026949) focus on the power utilities sector, with comprehensive exposure to thermal power, hydropower, wind power, nuclear power, and solar power. They can capture the growth elasticity of a new energy breakout while relying on the high dividends and stable cash flow of traditional power leaders to smooth market volatility, achieving a dual fit of "defensive base position + growth elasticity."
Data source: Shanghai and Shenzhen stock exchanges, etc. Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors should invest rationally based on their own financial conditions and risk tolerance, and pay close attention to position and risk management.
ETF fund-related fee disclosure: When investors subscribe to or redeem fund shares, the subscription and redemption agent may charge a commission of no more than 0.5%. On-exchange trading fees are subject to actual charges by securities companies, and no sales service fee is charged.
Fee disclosure for Huabao CSI All Share Power Utilities ETF Initiating Feeder Fund: (1) Subscription fee rate: below 2 million yuan, 0.3%; 2 million yuan (inclusive) and above, 1,000 yuan per transaction; (2) Redemption fee rate: within 7 days, 1.5% for both individual and institutional investors; 7 days (inclusive) and above, no redemption fee for individual investors; 7 days (inclusive) to 30 days, 1% for institutional investors; 30 days (inclusive) to 180 days, 0.5% for institutional investors; 180 days (inclusive) and above, no redemption fee for institutional investors; (3) Sales service fee: none.
Risk disclosure: Power ETF Huabao passively tracks the CSI All Share Power Utilities Index. The index base date is December 31, 2004, and the launch date is July 15, 2013. The constituent stocks of the index are adjusted in due course according to the index compilation rules, and its back-tested historical performance does not predict the index's future performance. The index constituent stocks mentioned in this article are for demonstration only, and individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading trends of any fund under the manager. The risk rating of this fund as assessed by the fund manager is R3-Medium Risk, suitable for balanced (C3) and above investors. The suitability matching opinion shall be subject to the sales institution. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice in any form to readers, nor do they bear any responsibility for direct or indirect losses caused by the use of the content of this article. Fund investment involves risks, past performance of a fund does not represent its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are performing well!
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