Recently, the meteoric rise of artificial intelligence (AI) has triggered an unprecedented surge in electricity consumption, propelling the issue of power shortages back to the forefront of global capital market concerns. The A-share power sector has showcased remarkable resilience, rallying strongly against the broader market trend and standing in stark contrast to the prevailing market volatility. Since the start of the year, indices tracking sub-sectors such as ultra-high voltage transmission, virtual power plants, and smart grids have all soared by over 30%. Several exchange-traded funds (ETFs) focused on power grid infrastructure have surged past the 35% mark. Among the technological solutions aimed at mitigating power shortages, the gas turbine sector has emerged as a burgeoning investment hotspot, propelling multiple heavily invested funds to achieve year-to-date returns exceeding 40%.

Fund managers highlight that China’s manufacturing sector, leveraging its efficiency advantages, is well-positioned to play a pivotal role in the global energy transition. The current investment focus centers on the export-oriented industrial chain, which offers higher gross profit margins and aligns with the growing global demand for reliable and sustainable power solutions.