Power stocks surge against market trend! Liixin New Energy and Zhejiang New Energy hit daily limits! Huabao Fund Power ETF (159146) surges toward four consecutive gains!

As of 11:05 a.m. on March 23, the electricity sector rebounded against the trend, with the CSI All Share Electric Power & Utilities Index rising 0.27%. Among the constituent stocks, Linuo New Energy and Zhejiang New Energy hit the daily limit, while Jiangsu New Energy and Yunnan Energy Holdings rose over 7%!

In popular ETFs, the Huabao Electric Power ETF (159146), which focuses entirely on electricity, increased by 0.45% intraday, hitting four consecutive positive days!

Currently, there are four major highlights for investing in the electricity sector:

Highlight 1: From top-level design to Token globalization, electricity has become a core asset in the AI era. The 2026 government work report first proposed “computing and electricity collaboration,” officially elevating the development of electricity and computing power to a national-level new infrastructure strategy. As of March 9, global Token consumption exceeded 15T per week, with explosive growth in computing demand. Meanwhile, driven by cost advantages and continuous improvements in model capabilities, domestic models’ Token usage is expected to keep rising, further boosting global AI computing needs.

Highlight 2: Strengthening logic of electricity price increases and a reassessment of utility assets. After the release of the “Notice on Improving Capacity Electricity Prices on the Generation Side” in 2026, capacity electricity prices for coal, gas, pumped storage, and independent new energy storage on the grid side were further refined. Additionally, ongoing conflicts in Russia-Ukraine and the Middle East continue to disrupt global energy supplies, with upward pressure on upstream coal and natural gas prices. Under the deepening market-oriented mechanism, energy prices are gradually passing through to electricity prices, pushing the price center upward and further enhancing the profitability of electricity assets.

Highlight 3: Aligning with the “HALO” asset paradigm, combining extreme defense and growth dividends. In the A-share market, electricity assets perfectly fit the “heavy assets, low淘汰” investment narrative, with shareholder equity backed by substantial physical credit and strong resistance to volatility. Due to their heavy capital investment and high capital utilization, these assets tend to have higher long-term ROE than the broader A-share index, with significant dividend yield advantages. This high ROE and high dividend characteristic allow for long-term allocation without excessive market timing, offering both cyclical growth and stable dividends, capable of crossing economic cycles.

Highlight 4: Valuation opportunities are emerging, with electricity assets offering both offense and defense. From a valuation perspective, the current PE and PB ratios of the electricity index are below the historical average relative to the power grid equipment index. Additionally, the overall dividend yield of the electricity index is significantly higher than that of the power grid equipment theme index, indicating better asset value. Moreover, the allocation of public utilities in active equity funds is at a historic low, presenting a clear opportunity for rebalancing.

To seize AI energy opportunities, it is recommended to focus on the Huabao Electric Power ETF (159146), which tracks an index covering the utility sector, including thermal, hydro, wind, nuclear, and photovoltaic power. The sector offers both dividends and growth potential, with leading power companies concentrated and expected to benefit from AI computing growth and electricity reform policies. This ETF provides a one-click way to grasp industry development opportunities. Note: The off-market connect fund (code: 026949) has been actively issuing since March 23!

Risk reminder: The Huabao Electric Power ETF passively tracks the CSI All Share Electric Power & Utilities Index, which was established on December 31, 2004, and published on July 15, 2013. The index components are adjusted periodically according to the index rules. Past backtest performance does not predict future results. The constituent stocks shown are for display only; descriptions of individual stocks are not investment advice and do not reflect holdings or trading activity of any funds managed by the manager. The risk level of this fund, assessed by the fund manager, is R3—medium risk, suitable for active investors (C3) and above. Suitability recommendations should be based on the sales institution’s judgment. Any information in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, or any other statements) is for reference only. Investors are responsible for their own investment decisions. The opinions, analysis, and forecasts in this article do not constitute investment advice and do not hold the author or the fund manager liable for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Please invest cautiously.

MACD golden cross signals are forming, and these stocks are showing good upward momentum!