On July 19, Beijing and Linzhi, Tibet simultaneously witnessed a historic moment — the Yarlung Tsangpo River's lower reaches hydropower project (hereinafter referred to as "Yaxia Hydropower") has officially started construction after years of preparation. Stimulated by this trillion-yuan-level major positive news, multiple sectors of the A-share market have seen a surge of涨停 (limit up) for two consecutive days.
According to a message from CCTV News client, the commencement ceremony of the Yarlung Tsangpo River's lower reaches hydropower project was held in Linzhi City, Tibet Autonomous Region on the morning of July 19. The project mainly adopts the development method of straightening the river bend and tunnel water diversion, constructing five cascade power stations, with an investment of about 1.2 trillion yuan. The electricity generated will be mainly exported and consumed, while also meeting the local needs of Tibet.
On March 28, 2025, Linzhi City, Tibet Autonomous Region (Drone photo) By Ma Mingyan, Xinhua News Agency, IC photo
According to data from the National Audit Office, the total investment in the Three Gorges Project was 207.2 billion yuan; the total installed capacity was 22.5 million kilowatts, with an annual power generation of over 100 billion kilowatt-hours.
Compared with that, the installed capacity of the Yarlung Tsangpo River's lower reaches hydropower project is between 70 million to 81 million kilowatts, equivalent to three Three Gorges Dams and five Baihetan Dams. The construction period of the project is 10 years. According to predictions, the project's annual power generation will reach 300 billion kilowatt-hours after completion, which is about three times that of the Three Gorges Hydropower Station.
Reuters pointed out that the power generation of the Yaxia Hydropower Project alone is equivalent to the total electricity consumption of the UK last year and exceeds Poland's total power generation capacity, undoubtedly becoming the largest power project in the world. Bloomberg analysis pointed out that this "epic" project will bring China an important new source of clean energy and may push China toward its goal of achieving carbon neutrality by 2060.
Additionally, Bloomberg believes that even excluding the benefits brought by the huge amount of electricity, just building such a massive infrastructure project will bring obvious economic benefits. The report stated, "The construction process itself is a return."
According to estimates from Citigroup, the Yaxia Hydropower Project is expected to drive China's economic growth by nearly 0.1 percentage points in the first year of construction. In a report, Citigroup wrote, "Assuming a construction period of 10 years, the project could boost GDP by about 120 billion yuan annually, and its actual economic impact may be greater." In addition, the project will inject a "strong stimulus" into multiple industries such as construction, cement, and steel.
Reuters pointed out that the launch of Yaxia Hydropower has been viewed by the Chinese capital market as an important economic stimulus signal, pushing up both the Chinese stock market and bond yields.
The market was fluctuating upward throughout the day, with the Shanghai Composite Index and the ChiNext Index both setting new highs for the year, with trading volume exceeding 1.7 trillion yuan, and short-term sentiment significantly improved, with hundreds of stocks hitting the limit up.
As soon as the market opened, the concept stocks related to Yaxia Hydropower became the focus of the A-shares and Hong Kong shares, with the water conservancy, infrastructure, steel, cement, construction machinery, and Tibet local stocks experiencing a surge of limit ups. Ultimately, more than 60 related stocks hit the limit up, with almost all the cement sector stocks hitting the limit up.
Zhu Bo Design, Tibet Tianlu, Gaozheng Mining Explosives, Tibet City Investment, Poly United, China Electric Power Construction, China Energy Engineering, Huaxin Cement, Western Construction, Dongfang Electric, etc., dozens of stocks hit the limit up.
Hong Kong shares also opened higher, with the building materials, steel, construction, and electrical equipment sectors surging. The Hang Seng Index broke through 25,000 points during the day, marking the first time since 2022. On the previous day, Eastern Electric in Hong Kong surged as much as 703%, then fell back, with the gain narrowing to 70%; Huaxin Cement opened at more than double, also falling back, and later rose with a gain of about 60%.
On July 22, as the effect of the Yaxia Hydropower Project continued to spread, super hydropower concept stocks opened higher again, Wuxin Tunnel Equipment gained 30% limit up, Tieji Heavy Industry, Zhu Bo Design, Guanlong Energy Saving gained 20% limit up, Poly United, China Electric Power Construction, Jiangnan Chemical, Gaozheng Mining Explosives, Yipuli, etc., many stocks were limit up in the pre-market bidding.
Since July 19, several securities companies have released special reports to explore investment opportunities in the supporting fields of the Yaxia Hydropower Project. Securities reports pointed out that with the start of the project, the demand in multiple sub-industries such as civil explosives, excavation, and geotechnical engineering will experience definite growth, and subsequent catalytic expectations continue to increase.
Long-term, the potential of the stocks related to the Yarlung Tsangpo River's lower reaches project is huge. Investors can pay attention to China Electric Power Construction, China Energy Engineering, etc., in the fields of investment and design and construction; for tunnel equipment, enterprises such as Tieji Heavy Industry, China Railway Construction Industry, and Wuxin Tunnel Equipment are worth close attention; in the civil explosives field, regional leaders such as Gaozheng Mining Explosives and Yipuli are expected to benefit; regional leading cement companies include Tibet Tianlu and Huaxin Cement; in the geotechnical field, investors can pay attention to Zhongyan DaDi, and the concrete admixture industry leader Su Botec also has investment value.
Cailian Press analyzed that due to the high technical barriers of this super hydropower project, it is difficult for the project to spill over to other related stocks. Therefore, after the initial broad-based surge, funds may focus more on the few truly benefited stocks at the front row.
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Original: https://www.toutiao.com/article/7529736799258772002/
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