Power ETF in South China (560580.SH) rose 0.22%, and Guodian Power rose 1.63%

On October 17, china.com.cn Finance and Economics Today, A-shares were volatile, and the power sector was among the top gainers. By 10:55, Guodian Power had risen 1.63%, and power ETF South (560580.SH) had risen 0.22%.

According to the analysis of Minmetals Securities, the coal price has rebounded recently, and actively concerned about the signing of the annual long-term association. The short-term logic of the reversal of thermal power lies in the trend of falling coal prices, and the long-term logic lies in the change of profit mechanism after the decline of hours. Recently, the coal price has rebounded, which is mainly affected by factors such as the safety inspection of the thermal coal production area, the near overhaul of Datong Qinhuangdao Line, and the replenishment of the downstream non electric industry. It is expected that the follow-up will maintain a high and volatile operation. In addition, it can be seen from the recent performance forecast of some power enterprises in the third quarter that with the reduction of high price coal inventory in the third quarter, the profitability of thermal power has improved significantly. It is suggested to pay attention to the allocation opportunities in the power sector.

key word: Coal price power shock plate