Daily Investment Strategy
Daily focus：Huaneng Power International（0902）
The China Meteorological Administration predicts that the temperature this summer will be 1 to 2 degrees Celsius higher than usual, with some areas exceeding 40 degrees Celsius, which will drive the peak of electricity consumption. Residential electricity consumption accounts for 15.2%, and air conditioning load accounts for 37% of the East China Power Grid. The continued high temperature has caused the maximum power load to reach a new high of 1.465bn kilowatts. Supply and demand are tight, and the State Grid uses ultra-high voltage cross-regional transmission to ensure stable supply. With its coal-fired and renewable energy portfolio, Huaneng Power International has benefited from lower fuel costs and long-term contract strategies to ease the pressure of lowering electricity prices. The weakening of hydropower substitution has led to a rebound in coal-fired power generation. The company has increased sales flexibility and stabilized profits through market-based transactions.
Federal Reserve June meeting minutes
The latest Federal Reserve June meeting minutes show that participants unanimously agreed that despite net export volatility affecting the data, recent indicators suggest economic activity continues to expand steadily. The unemployment rate remains at low levels, labor market conditions stay robust, but the inflation rate is still slightly elevated. When considering the monetary policy outlook, participants generally believe that given the continued strength of economic growth and the labor market, while current monetary policy may be moderately restrictive, the committee is fully capable of waiting for clearer prospects regarding inflation and economic activity. On the other hand, a minority of officials also indicated their willingness to consider lowering the target range for the policy rate at the next meeting.
Hong Kong Stock Connect recorded a net inflow of HK$9.25 billion on Wednesday, with China Construction Bank (939) recording the largest net inflow of HK$1.1 billion, followed by Alibaba (9988).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to: https://apps.sfc.https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
