Electric Grid Equipment Stocks Surge Amid Policy Support

In a remarkable turn of events on July 14, 2025, electric grid equipment stocks experienced a significant surge on the Shenzhen Stock Exchange. Leading the charge was Xinneng Electric, which saw its stock price soar by 20% over nine consecutive trading sessions, hitting a new high. This bullish trend was not isolated to Xinneng Electric alone; other notable companies such as Keli Electronics, Guodian Nanzi, Suyuan Electric, and Taiyong Changzheng also hit their maximum price limits, with companies like Kerun Automation, Heshun Electric, Xintie Electric, and Baiyun Electric following suit in the rally.

The catalyst behind this surge can be traced back to a policy announcement by the National Development and Reform Commission (NDRC) on July 11, 2025. The NDRC released a response letter approving the “Cross-Grid Operation Area Regularized Power Trading Mechanism,” which aims to optimize power resource allocation through a regularized trading mechanism. This policy is expected to enhance power supply reliability, especially during peak demand periods like the summer of 2025. The announcement has been well-received by the market, as it promises to support the growth and stability of the electric grid equipment sector.

Leveraged Funds Continue to Invest in the ChiNext Board

In another development, leveraged funds have shown a consistent interest in the ChiNext board, with a continuous increase in financing over the past five trading days. As of July 11, 2025, the total financing balance for ChiNext board companies reached 36,644.36 billion yuan, marking a cumulative increase of 52.25 billion yuan over this period. This trend underscores the growing investor confidence in the innovative and high-growth potential companies listed on the ChiNext board.

Among the companies benefiting from this influx of leveraged funds, Filiale (300395) stood out with a financing balance increase of 175.10%, reaching 2,543.55 million yuan. Other notable companies include Jialian Technology (301193) and Jingxue Energy Saving (301010), which saw their financing balances increase by 153.87% and 115.07%, respectively. However, not all companies experienced growth; Rucheng Environmental Protection (301273) saw a decrease of 28.77% in its financing balance, highlighting the varied impact of market dynamics on different sectors.

Newonder Special Electric Co Ltd: A Glimpse into the Company

Amidst these market movements, Newonder Special Electric Co Ltd, a company listed on the Shenzhen Stock Exchange, continues to operate within the vibrant electric equipment sector in China. With a market capitalization of 3,814,700,143 CNY and a close price of 13.03 CNY on July 10, 2025, Newonder Special Electric is positioned to potentially benefit from the broader sector’s growth. The company’s performance and strategic positioning will be closely watched by investors, especially in light of the recent policy developments and market trends favoring the electric grid equipment sector.

As the electric grid equipment sector continues to gain momentum, companies like Newonder Special Electric Co Ltd are at the forefront of benefiting from the evolving market dynamics and policy support. The coming months will be crucial in determining how these companies leverage the current opportunities to drive growth and innovation in the electric equipment industry.