China Utility Shares Primed for Gains on Reopening, Subsidies
- CSI 300 utilities index has gained nearly 10% since mid-March
- Thermal sector has “bottomed out” and set for rebound: CICC
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Shares linked to Chinese utilities are primed to extend their rebound as the economy’s reopening spurs electricity consumption and tens of billions of dollars worth overdue subsidies may finally make their way, analysts say.
A subgauge of utility stocks on the CSI 300 Index has jumped nearly 10% since a recent mid-March low, outpacing a less than 3% rise in the benchmark index after policymakers vowed to broadly support markets. Heavyweights like Huaneng Power International Inc. and China Resources Power Holdings Co. had tumbled more than 30% to start the year.