The bottleneck for AI is electricity. The Green Power ETF Huaxia (562550) has a solid mid- to long-term logic and the highest electricity content in the entire market.

On March 31, China’s A-share three major stock indexes all fell, then edged up slightly in the afternoon. The power sector led the decline. As of 13:09, Huaxia Green Power ETF (562550) narrowed its drop to 1.31%, with trading volume reaching 77.06 million yuan. It remained firmly at No. 1 among its peers. Among its holdings, Min Energy, Guiguan Power, Datou Hydropower, Yangtze Power, and Fujian Energy, among others, rose against the trend.

Huaxia Green Power ETF has received net capital inflows for nine consecutive trading days. Its latest size reached 1.23B yuan, a new high since its inception, and it ranks No. 1 by size within the same index.

The energy revolution driven by AI compute capacity is reshaping the power industry landscape. According to the clearly stated requirements in the “Special Action Plan for Green and Low-Carbon Development of Data Centers,” the share of green electricity in newly built data centers at national hub nodes must exceed 80%. Green electricity has become the most direct energy supply for data centers.

CITIC Securities said that the ongoing conflict between Iran and the U.S. has continued to disrupt global energy supply chains, highlighting the necessity of energy independence and controllability. China’s energy consumption structure is diversified, and overall risks from dependence on foreign sources are controllable. The transition to clean energy has achieved notable results, but infrastructure and high-end manufacturing still need further development and improvement. Under demands to ensure energy security and promote the energy transition, it is expected that power price policies will be introduced one after another to drive a price floor to be reached earlier and then rebound, boosting investors’ enthusiasm for the power sector. The power sector is expected to see opportunities for a double repair in both fundamentals and valuations.

Huaxia Green Power ETF (562550): Largest in fund size within the same index; tracks the CSI Green Power Index. In the Shenwan secondary industry classification, the power sector’s content exceeds 99%. It is the “purest” power-related index in the entire market. It packages leading power companies with one click, not only including clean-energy companies represented by hydropower, wind power, and photovoltaic power, but also incorporating energy-transition samples such as thermal power and nuclear power. The “wind, solar, hydro, and nuclear” content exceeds 55%. Among the constituent stocks are companies such as Datang Power Generation, GCL Energy Technology, Jinkai New Energy, Henan Energy, Green Power, and Energy Conservation Wind Power, among others—compute-and-power coordination concept stocks.

Daily Economic News