Hong Kong stocks' power grid concept strengthens, Dongfang Electric rises over 11%, multiple demand drivers accelerate industry chain investment

Ask AI · How can the demand for new energy and AI accelerate the speed of power grid investment?

Cailian Press, April 8 (Editor: Feng Yi) Today, the Hong Kong stock market rebounded, and power grid concept stocks surged strongly on the positive news of accelerated upstream investments.

As of the time of writing, Harbin Electric(01133.HK) and Dongfang Electric(01072.HK) both rose over 11%, Weisheng Holdings(03393.HK) increased by more than 8%, and several other stocks like Shanghai Electric(02727.HK) also gained over 5%.

On the news front, State Grid Corporation of China completed fixed asset investments of 129 billion yuan in the first quarter of this year, a year-on-year increase of 37%, driving upstream and downstream industry chain investments exceeding 250 billion yuan. From a medium- and long-term perspective, during the “14th Five-Year Plan” period, China Southern Power Grid has planned over 5 trillion yuan in investments, which is expected to continue boosting demand for power grid equipment.

At the same time, it is worth noting that recently, the first ultra-high-voltage AC transmission project during the “14th Five-Year Plan” period — the Panzhi Ultra-High Voltage AC Transmission Project — has officially started construction, with a total investment of about 23.2 billion yuan, a line length of 994 kilometers, and an expected operation date in 2028.

Some analysts point out that, with the intensive start of ultra-high-voltage projects in the first quarter, driven by the dual demands of new energy absorption and power calculation collaboration, the investment pace has significantly accelerated. Against this background, the order visibility for power grid equipment companies continues to improve.

Guojin Securities analysts believe that as the proportion of new energy installed capacity continues to increase, and with the explosion of new high-energy-consuming loads such as AIDC, there is an urgent need to upgrade power grid infrastructure.

On the other hand, since the beginning of the year, overseas demand has blossomed in multiple areas, providing favorable support for the prosperity of the power grid equipment industry.

Overall, the market has now reached a consensus on the renewal and replacement of North American power grids and the surge in AI electricity use. Coupled with supply chain bottlenecks overseas, domestic equipment exports are entering a golden development period.

Customs data shows that from January to February 2026, China’s power transformer exports maintained a growth rate of over 40%, continuing a high growth trend, further confirming strong overseas demand.

In addition, recent escalation of tensions in the Middle East has driven up oil and gas prices, which also reinforces Europe’s urgency to reduce dependence on fossil fuels, potentially leading to a short-term release of demand for power grid equipment imports.

(Cailian Press, Feng Yi)