The dual drivers of power grid investment and energy infrastructure continue to propel growth. The Power Grid ETF (561380) keeps attracting funds, with a net inflow of over 2.6 billion yuan for 10 consecutive days.

HuaFu Securities points out that grid investment and energy infrastructure are driven by dual forces. The State Grid’s strong start to the year confirms a high level of activity throughout the year, indicating that grid investment is shifting from the traditional “off-season” to an earlier “peak season.” Structurally, investment is shifting from main trunk networks like ultra-high voltage lines to weaker links such as distribution network smartization and old equipment upgrades. Meanwhile, Inner Mongolia’s energy planning has been intensified, and a feasibility study has been launched for a flexible DC transmission line from Alxa to the central Mongolian region, which can support long-distance, high-capacity green power transmission. Overall, as an important counter-cyclical adjustment tool, grid investment will play a prominent role in the 2026 growth stabilization policy package, with strong certainty in industry chain performance throughout the year.

The Grid ETF (561380) tracks the Hang Seng A-Share Electric Grid Equipment Index, which covers listed companies involved in the electric grid equipment sector in China’s A-share market. The constituent stocks mainly focus on power transmission, distribution systems, and related services. The index’s industry allocation is primarily manufacturing, supplemented by information technology and scientific research services, aiming to reflect the overall performance of securities related to grid equipment with clear industry representation and professional focus.

Risk Reminder: Mentioning individual stocks is only for industry event analysis and does not constitute any stock recommendation or investment advice. Short-term fluctuations of the index are for reference only and do not predict future performance, nor do they constitute a promise or guarantee of fund performance. Views may change with market conditions and do not constitute investment advice or commitments. Different funds have varying risk and return characteristics; investors are advised to carefully read the fund’s legal documents, fully understand product features, risk levels, and distribution principles, and choose products that match their risk tolerance. Invest cautiously.

Daily Economic News