Datang HuaYin Electric Power Co Ltd

The A-share power sector triggered a wave of daily limit up moves. On July 20, the power sector rose 4.8 percent overall, with about 17 stocks including Huaneng Mengdian, Huayin Electric Power, Jinkai New Energy, and Jiantou Energy hitting their daily limit up. The rally is linked to surging electricity loads during the summer peak season and an explosion in computing power demand. After the national electricity load reached 1.518 billion kilowatts on July 10, it climbed to 1.551 billion kilowatts on July 14, with 16 provincial-level grids refreshing their peak a cumulative 59 times. In the first half of the year, total electricity consumption reached 5.1 trillion kilowatt-hours, up 5.3 percent year-on-year, with charging and battery swap services surging 56.9 percent and internet data services up 44 percent. The China Electricity Council expects that during the 15th Five-Year Plan period, annual incremental electricity consumption from computing power will exceed 100 billion kilowatt-hours, and by 2030 total computing power electricity consumption could reach 800 billion kilowatt-hours, accounting for about 6 percent of total societal electricity use.

At the open on July 20, major A-share indices rallied across the board. The ChiNext Index rose nearly 2%, and the SSE 50 gained over 2%. On the sector front, semiconductors, MLCC concept stocks, CPO concept stocks, memory chips, and optical communications led the gains, while traditional Chinese medicine and white goods were among the laggards. Oil and gas stocks strengthened collectively, with Shandong Molong hitting its daily limit up in a straight line, and Keli Shares and Tongyuan Petroleum following higher. Brent crude topped 91 dollars per barrel, up 3.77% intraday. Computing power leasing concepts were active, with Litong Electronics hitting its daily limit up. In news, Moonshot AI's Kimi suspended new consumer subscriptions to focus on existing subscribers and expand computing power capacity. Kimi concept stocks opened sharply higher, with Jiuan Medical hitting the daily limit up for the fourth time in five sessions, and Mio Exhibition notching its second consecutive limit up. CPO concept stocks fluctuated higher, with Gongjin Shares hitting its daily limit up. Eoptolink Technology expects first-half 2026 net profit of 7 billion to 8 billion yuan, a year-on-year increase of 77.56% to 102.93%. The power sector was repeatedly active, with Huayin Electric Power hitting its second consecutive limit up. Jiangsu's power grid reached a peak load of 157.59 gigawatts, topping the 100-million-kilowatt mark for the tenth consecutive year. In Hong Kong, the Hang Seng Index and Hang Seng Tech Index rose, with Yangtze Optical Fibre and Cable surging over 9% and Alibaba gaining over 5%.

In early trading on July 20, the three major A-share indices rose. The Shanghai Composite Index gained 1.18%, the Shenzhen Component Index rose 0.21%, and the ChiNext Index climbed 1.13%. Combined turnover on the two exchanges reached 1.67 trillion yuan, with over 2,900 stocks advancing. Sectors such as oil and gas, baijiu, and coal led the gains, while the power sector rebounded collectively. Jiawei New Energy, Huayin Electric Power, and Fuling Electric Power hit their daily limit up. Kweichow Moutai surged over 5% to 1,322.97 yuan. Before the market opened, multiple companies in the power and coal sectors announced plans to increase holdings or conduct buybacks. SDIC Power's controlling shareholder plans to increase its stake by 150 million yuan within six months. China Coal Energy's controlling shareholder plans to increase holdings by 50 million to 100 million yuan within 12 months. NARI Technology's chairman proposed a buyback of 500 million to 1 billion yuan. China Shenhua Energy announced a 2026 coal sales volume target of 618.1 million tonnes, a power generation target of 288.1 billion kilowatt-hours, and an operating revenue target of 360 billion yuan. Longyuan Power plans to distribute annual cash dividends of no less than 30% of net profit attributable to the parent company from 2025 to 2027. In addition, Aluminum Corporation of China's controlling shareholder plans to increase holdings by 1 billion to 2 billion yuan, and CRRC Corporation's controlling shareholder plans to increase holdings by 150 million to 300 million yuan. Both stocks rose over 6% in early trading.

Power sector concepts strengthened intraday. Among related constituent stocks, Huayin Electric Power rose 10.07%, Jinkai New Energy rose 10.05%, Lixin Energy rose 10.04%, Fuling Electric Power rose 10.01%, and Huadian Energy rose 10.00%. According to Jiangsu Power Grid, the province's peak electricity load reached 157.59 million kilowatts, setting a new historical record. This marks the tenth consecutive year the load has exceeded the 100-million-kilowatt threshold since first breaking it in 2016. A research report from Zhongtai Securities noted that as of February 2026, 11 provinces and cities nationwide have abolished fixed time-of-use electricity pricing, and the goal of full coverage for the electricity spot market is accelerating. Electricity retailers are shifting from spread arbitrage to risk management, significantly boosting demand for ancillary services in electricity trading.

On July 17, Ai Ai Precision Seals opened at its daily limit-up, securing its fourth consecutive limit-up, closing at 44.92 yuan per share with a latest market cap of 5.87 billion yuan. Earlier, the company disclosed progress on a change of control: actual controllers Tu Mulin and Cai Ruimei, a married couple, plan to transfer their equity, and the controlling shareholder will change to Shanghai Yusheng Tongfeng Metal Materials Technology Co., Ltd., with the actual controller changing to Yuan Yuan. After the change, Shanghai Yusheng will hold 40% of Ai Ai Precision Seals. The power sector saw a sudden surge, with Huayin Electric Power hitting its limit-up, sealed by over 900,000 lots of buy orders. Leshan Electric Power and Shennandian A also hit their limit-ups, while Hangzhou Thermal Power and Xichang Electric Power rose in tandem. On the news front, the National Energy Administration released data showing that total electricity consumption in June reached 898.1 billion kilowatt-hours, up 3.7% year-on-year, with electricity use in charging and battery swap services and internet data services surging 57.1% and 41.4% respectively. The on-device hardware concept was active, with AI phones and glasses leading the gains. Mio Exhibition hit a 20% limit-up, and Daoming Optics rose for a second consecutive limit-up. The Cyberspace Administration of China released filing information for seven mobile on-device generative AI services, including Apple Intelligence and Huawei's Xiaoyi AI large model. The smart driving concept was also active, with Soling Shares hitting its limit-up. On the news front, a Huawei executive said that autonomous driving will see rapid iteration, with low-speed L4 pilot programs in urban areas starting in 2026.

On the morning of July 17, the three major A-share indexes fell collectively. The Shanghai Composite Index dropped 1.64 percent to 3,818.59 points, the Shenzhen Component Index fell 3.7 percent, the ChiNext Index declined 4.71 percent, and the STAR Composite Index tumbled over 5 percent. More than 4,300 stocks across the market declined. The power sector bucked the trend, with Huayin Electric hitting the daily limit up in a straight line, with over 660,000 lots locked in. Leshan Electric, Guiguan Electric, Shennan Electric A, Hangzhou Thermal Power, Lixin Energy, and Ganneng also hit their daily limit up. Jiawei New Energy surged nearly 16 percent. On the news front, many regions continue to experience high temperatures. Shanghai's power grid reached a record high in maximum electricity load, and several cities in Jiangsu also set new records. Data from the National Energy Administration showed that total electricity consumption in June was 898.1 billion kilowatt-hours, up 3.7 percent year-on-year. The technology sector slumped heavily, with CPO concept stocks plunging. Demingli hit the daily limit down for three consecutive days. Dongshan Precision, Yangtze Optical Fibre, and Accelink Technologies, each with a market value of over 100 billion yuan, also hit the daily limit down. Zhongji Innolight fell over 10 percent, and Tianfu Communication dropped over 11 percent. The pharmaceutical sector also tumbled, with CRO concept stocks Zhaoyan New Drug and Asymchem hitting the daily limit down, and WuXi AppTec falling over 6 percent.