The Zhitong Finance App learned that power stocks rose collectively. As of press release, CGN Power (01816) rose 4.01% to HK$3.11; Datang New Energy (01798) rose 3.17% to HK$1.95; China Resources Power (00836) rose 2.26% to HK$22.65; and China Electric Power (02380) rose 1.36% to HK$3.73.

According to the news, the State Council issued the “2024-2025 Energy Conservation and Carbon Reduction Action Plan” on May 29, which proposes to reduce carbon dioxide emissions by about 3.9% in 2024. Citigroup released a research report saying that China's newly released action plan for energy saving and carbon reduction is generally higher than the number completed last year, and details on how to implement it show that clean energy is a priority for the government, which may benefit individual stocks related to the clean energy industry, such as CGN Electric Power and China Resources Electric Power.

Zhongyuan Securities pointed out that reduced fuel costs, increased power generation, and electricity prices remained high have benefited the power industry. According to data from the National Bureau of Statistics, the profit of the power industry increased by 44.1% in April. Judging from the published industry supply and demand data and profit situation, factors such as the recovery in industrial production, the development of the AI industry, and the recovery in market demand have increased energy demand for electricity and natural gas. Guaranteed electricity supply stimulates demand for electricity consumption. The National Energy Administration predicts that during the summer of 2024, the country's electricity consumption load will grow rapidly, with the highest load increasing by more than 100 million kilowatts over the same period last year. Furthermore, as an undervalued sector with strong defensive attributes, it is recommended to focus on investment opportunities for leading companies with stable performance and high dividend rates in the hydropower, nuclear power, thermal power, and gas sectors from a medium- to long-term perspective.