JPMorgan released a research report stating that higher than normal temperatures in northern China will be bullish for electrical utilities demand growth. Among all power generation companies, thermal power generation companies still have room for utilization hours to rise. Therefore, Huaneng Lancang River Hydropower Inc. (00902.HK) is the most bullish, and NARI Technology (600406.SH) and XJ Electric Co., Ltd. (000400.SZ) are also bullish, believing that these companies will benefit from the government's move to promote more inter-provincial power transmission to improve power dispatching.

From a fundamental perspective, water power companies such as Huaneng Lancang River Hydropower Inc. (600025.SH), followed by nuclear power companies such as CGN Power (01816.HK), then thermal power generation companies such as Huaneng, and finally wind and solar power plants are the most bullish among power generation companies. In short, during the summer, thermal power plants will see more positive catalysts.