Public utility ETF policy favorable news combined with sector-wide gains, making it attractive for medium- and long-term allocation

How can AI and electricity calculation collaboration policies make wind power assets a core beneficiary sector?

On the news front, 1) Trump stated that talks with Iran are positive but the situation remains unchanged, boosting market confidence; 2) For the first time, “electricity calculation collaboration” was included in the government work report, making wind power assets a key beneficiary due to their high operating hours and output curve matching.

In brokerage research, Guotai Haitong Securities pointed out that the utility industry’s urban gas sector has significant dividend potential, with stable cash flow and defensive characteristics highlighting its value in market fluctuations; Tianfeng Securities analyzed that as policies for nuclear power pricing mechanisms in Liaoning, Guangxi, and other regions are implemented, the profitability stability of nuclear power operators is expected to improve, potentially reshaping industry valuation logic. Both firms believe that under policy support and industry characteristics, the utility sector has long- to medium-term investment appeal, but attention should be paid to how power market reforms affect pricing mechanisms in different segments.

As of 09:30 on March 24, the CSI Utility Index (000995.CSI) rose 0.84%; major constituent stocks mostly gained, with Huaneng Power up 2.86%, China Yangtze Power up 0.45%, Shanghai Electric Power up 2.25%, China Three Gorges Energy up 0.70%, and China Power Green Energy up 2.12%.

Data shows that the top ten weights in the CSI Utility Index (000995.CSI) are Yangtze Power, China Nuclear Power, China Three Gorges Energy, China Guodian Power, Yantai Energy, State Power Investment Corporation, China General Nuclear Power, Huaneng Power, Sichuan Investment Energy, and Shanghai Electric Power, with a combined weight of 52.03%.

The Utility ETF closely tracks the CSI Utility Index. The CSI All-Share Industry Select Index series selects listed companies from the CSI All-Share Industry Index that meet certain liquidity and market cap criteria to reflect the overall performance of representative and investable companies within each industry.

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Utility ETF (560190)