Chinese Nuclear Power Stocks Climb After New Reactor Approvalsby
China cleared construction of eight nuclear reactors in 2015
Fangchenggang project to use homegrown Hualong One technology
Chinese nuclear power generators rose in Hong Kong and Shanghai after the State Council approved the construction of four additional reactors on Wednesday.
CGN Power Co., the listed arm of China General Nuclear Power Corp., rose as much as 3.6 percent to HK$2.88 in Hong Kong, and China National Nuclear Power Co. gained as much as 3.5 percent to 10.11 yuan in Shanghai. Hong Kong’s benchmark Hang Seng Index gained 1.2 percent, while the Shanghai Composite Index rose 1.8 percent as of 10:48 a.m.
Among the four reactors approved, two at Guangxi’s Fangchenggang will use CGN’s own Hualong One third-generation technology, according to a CGN statement. That is the same model expected to be exported for the Bradwell project in the U.K., to be built under an agreement between CGN and Electricite de France SA for a 1 gigawatt plant.
China has approved construction of eight reactors this year, including yesterday’s approval. China plans to build as many as eight nuclear power plants each year from 2016 to 2020 and invest 500 billion yuan ($77 billion) on next-generation nuclear reactors during the five years, according to a statement from state-owned Power Construction Corp. of China Ltd. earlier this month, citing a draft of China’s 13th five-year plan.
“China’s nuclear power expansion is back on the right track now, especially with this late-minute approval from the government,” Shi Yan, a Shanghai-based analyst at UOB-Kay Hian Ltd., said by phone. “The government is trying to build a bit of momentum for the nuclear power industry heading into 2016 and setting up a wave of nuclear construction in the next couple of years.”