Changes in Hong Kong stocks | Huaneng International (00902) rose more than 4% in the afternoon, the Coal and Electricity General Association joined the unified management agency and is optimistic that electricity prices have bottomed out and rebounded in '27

The Zhitong Finance App learned that Huaneng International (00902) rose more than 4% in the afternoon. As of press release, it rose 4.07% to HK$6.26 million, with a turnover of HK$226 million.

According to the news, the National Development and Reform Commission recently issued the “Administrative Measures on Medium- and Long-Term Contracts for Energy Insurance and Supply (Trial)”. The same set of system rules will apply to the three types of insurance and supply contracts for electricity, coal, electricity, and natural gas. Previously, high-ratio contracts were forced to be added to fixed prices. In the upward cycle of coal prices, thermal power companies faced the dilemma of generating more and more losses. Instead, the Changxie contract became an operating burden. In the future, the Electricity General Association will adjust the ratio and price mechanism to ensure supply flexibility.

CITIC Construction Investment pointed out that since 2026, the overall price of thermal coal has shown an upward trend, and the cost of coal-fired power generation has increased significantly. Overall, the rise in monthly electricity prices hedged the rise in fuel costs to a certain extent. At the same time, it also provided support for the 2027 Changxie electricity price negotiations at the end of the year. Specifically, we believe there is a strong certainty that electricity prices will rise in the three provinces of Guangdong, Jiangsu, and Zhejiang in 2027, and the profitability of regional thermal power is expected to pick up in 2027.