Electric Equipment Stocks Surge Amid Policy Developments
In a significant development for the electric equipment sector, stocks have seen a notable uptick, with companies like Xinling Electric leading the charge. On July 14, 2025, reports from South China Morning Post highlighted that electric equipment stocks continued their upward trajectory, with Xinling Electric achieving a 20-day consecutive rise, hitting a new high. This surge follows a series of gains by other companies in the sector, including Keli Electronics, Guodian Nanzi, Suyuan Electric, and Taiyong Changzheng, which all hit their maximum price limits. Other companies like KeRun Zhikong, Heshun Electric, Xintie Electric, and Baiyun Electric also saw significant gains.
The catalyst behind this rally appears to be a policy announcement by the National Development and Reform Commission (NDRC) on July 11, 2025. The NDRC released a response to the “Scheme for the Regularized Cross-Grid Electricity Trading Mechanism,” which essentially greenlights the plan. It mandates the State Grid Corporation of China and the Southern Power Grid Company to leverage this mechanism for optimized power resource allocation during the peak demand period of the summer of 2025. This policy is aimed at enhancing power supply reliability, a move that has been warmly received by the market.
Leveraged Funds Increase Investments in the ChiNext Board
In another development, leveraged funds have been consistently increasing their investments in the ChiNext board for five consecutive days, as reported by Securities Times. The latest financing balance for companies listed on the ChiNext board reached 36.44 billion yuan, marking a continuous increase over the past five trading days, with a cumulative addition of 52.25 billion yuan. This trend indicates a growing confidence among leveraged funds in the potential of these companies.
During this period of increased financing, 516 companies saw their financing balances rise, with 71 of them experiencing growth exceeding 20%. The most significant growth was observed in Feilihua, with a financing balance increase of 175.10%. Other notable companies include Jialian Technology and Jingxue Energy Saving, with increases of 153.87% and 115.07%, respectively. However, not all companies experienced growth; 418 companies saw their financing balances decrease, with Rucheng Environmental Protection witnessing the largest drop of 28.77%.
Capital Outflow from Power Equipment Sector
Despite the positive developments in the electric equipment sector, the power equipment sector experienced a capital outflow of 38.28 billion yuan on July 11, 2025. While the Shanghai Composite Index saw a marginal increase, the power equipment sector declined by 0.18%. This outflow is part of a broader trend where 24 sectors experienced net capital outflows, with the power equipment sector leading the way. However, it’s worth noting that within the sector, some companies like Xinwangda and Yamatone saw significant capital inflows, indicating a mixed sentiment among investors.
New Special Electric Co Ltd: A Company Profile
Amid these market movements, Newonder Special Electric Co Ltd, a company listed on the Shenzhen Stock Exchange, remains a key player in the electric equipment sector. As of July 10, 2025, the company’s close price stood at 13.03 CNY, with a 52-week high of 15.95 CNY and a low of 7.22 CNY. With a market capitalization of 3.81 billion CNY, Newonder Special Electric Co Ltd is positioned to potentially benefit from the sector’s positive momentum, driven by policy support and increased investor interest in electric equipment stocks.
In conclusion, the electric equipment sector is experiencing a period of significant growth, fueled by policy developments and increased investor confidence. Companies like Newonder Special Electric Co Ltd are well-placed to capitalize on these trends, although the sector also faces challenges, including capital outflows in certain areas. Investors are advised to stay informed and consider both the opportunities and risks in this dynamic market.