Hong Kong Market Moves | Power Sector Stocks Decline Collectively as El Niño Disrupts Power Markets, Increasing Pressure on Thermal Power Firms to Meet Peak Demand and Control Costs

Power sector stocks declined across the board, with Longyuan Power (00916) down 4.47% to HK$5.77; Huaneng International (00902) down 2.97% to HK$6.86; China Resources Power (00836) down 2.58% to HK$19.29; and Huadian International (01071) down 2.25% to HK$4.35.

Zhitong FinanceJun 16 14:00

Zhitong HK Connect Holdings Analysis | June 16

Stock Connect Holdings Analysis | June 15, 2026

Zhitong FinanceJun 16 08:30

Morgan Stanley: Power shortages are becoming a core bottleneck for AI

Morgan Stanley believes that power shortages have become a critical bottleneck in AI infrastructure development. Lead times for power transformers have surged from 12–16 weeks pre-pandemic to 128–144 weeks, and the backlog of renewable energy projects awaiting grid interconnection in the U.S. now exceeds twice the current installed capacity. Meanwhile, a shortage of 300,000 electricians and water stress affecting 43% of data centers are compounding constraints that are driving up the scarcity of computing power, further strengthening the pricing power of 'compute merchants' who control reliable computational resources.

wallstreetcnJun 15 12:53

Guojin Securities: Profitability has become less correlated with coal prices and annual long-term contract electricity tariffs; both public utility-like characteristics and integration of computing and power can elevate the valuation anchor.

Thermal power, which is fundamentally bottoming out and currently underweighted and undervalued, deserves close attention due to its increasing utility-like characteristics combined with thematic market opportunities.

Zhitong FinanceJun 15 10:35

Express News | China Huadian Corporation's coal inventory is sufficient for more than 32 days.

BreakingsJun 10 18:33

《Major Brokerage》Bank of America Securities has upgraded China General Nuclear Power Group (01816.HK) to 'Buy' rating, while maintaining a bearish outlook on Huaneng Power (00902.HK), Huadian Power (01071.HK), and Longyuan Power (00916.HK).

Bank of America Securities published a report noting that higher energy prices, the El Niño phenomenon, and direct power supply models have driven the outperformance of independent power producers. Over the past month, related H-shares have risen by approximately 15% on average, led by thermal power stocks. However, the firm believes that the impact of rising coal costs will outweigh any potential electricity tariff hikes, leading to lower profitability for thermal power generators. Current valuations already reflect expectations of flat or modestly higher tariffs. Meanwhile, the scale of direct green power supply remains too small, and its economic viability is uncertain, making it insufficient to support earnings. As such, the firm maintains its views on Huaneng (00902.HK), Huadian (01071.HK), and Longyuan (0

AASTOCKSJun 5 15:21