HK Stock Market Move | Power stocks collectively rise; Jiangsu and Guangdong electricity prices surge in October; institutions say signals of electricity price stabilization and upward movement are strengthening.

Power stocks collectively rise. As of press time, HUANENG POWER (00902) is up 3.65% at HK$5.82; CHINA RES POWER (00836) is up 3.05% at HK$19.57; HUADIAN POWER (01071) is up 2.90% at HK$4.085; China Longyuan Power Group Corporation (00916) is up 2.23% at HK$5.27. On the news front, the results of Jiangsu and Guangdong's October monthly contract electricity prices have been announced. Jiangsu's October centralized trading weighted average price reached 395.32 yuan/MWh, up 50.8 yuan/MWh month-on-month and up 54.6 yuan/MWh year-on-year; Guangdong's monthly comprehensive trading average price reached 456.78 yuan/MWh, up 53.5 yuan/MWh month-on-month and up 84.4 yuan/MWh year-on-year. Guosheng pointed out that Jiangsu and Guangdong's October electricity prices rose both year-on-year and month-on-month, strengthening the signal of electricity price stabilization and upward movement. It continues to monitor changes in market expectations for the year-end 2027 annual long-term contract electricity price negotiations. Orient stated that monthly trading prices continue to exceed annual contract prices, and combined with recent marginal support from the spot side, the market has effectively formed a higher pricing anchor; if prices in the fourth quarter continue at current levels, we maintain strong confidence in the recovery of the 2027 annual long-term contract electricity price center, though the final increase will still depend on coal price trends and the outcome of signing negotiations among market participants.