Huaneng Power International Inc. and the Green Energy ETF Surge

In recent financial news, Huaneng Power International Inc., a prominent utility service provider in China, has been indirectly highlighted through the performance of the Green Energy ETF (562550). This ETF, which closely tracks the China Green Electricity Index, has seen significant gains, reflecting broader market trends in the renewable energy sector.

Market Performance and ETF Gains

As of April 24, 2025, the China Green Electricity Index rose by 1.23%, with key component stocks such as Huayin Power (600744) and Guangxi Energy (600310) experiencing substantial increases of 10.00% and 9.98%, respectively. The Green Energy ETF itself climbed by 1.06%, reaching a price of 1.05 yuan. Over the past two weeks, the ETF has accumulated a 1.07% increase, ranking it first among comparable funds.

Liquidity and Scale

The ETF has demonstrated strong liquidity, with a mid-day turnover of 3.98% and a weekly average turnover of 1,404.47 million yuan, leading its category. Its scale has reached 2.24 billion yuan, a new high in the past year, placing it in the top third of comparable funds. The ETF’s share count has also hit a new high at 2.15 billion shares.

Valuation and Investment Flow

From a valuation perspective, the ETF’s underlying index has a trailing twelve-month price-to-earnings ratio of just 16.75, positioning it in the lowest 9.34% of its historical range. This indicates a historically low valuation. The ETF has attracted continuous net inflows over the past nine days, with a peak single-day inflow of 2,335.28 million yuan, totaling 9,367.46 million yuan.

Index Composition

The China Green Electricity Index comprises 50 publicly traded companies involved in solar, wind, and hydroelectric power, reflecting the overall performance of the green energy sector. As of March 31, 2025, the top ten weighted stocks in the index include Longjiang Power (600900) and Sanxia Energy (600905), collectively accounting for 57.82% of the index.

Market Outlook

The broader market outlook remains positive, with the China stock market expected to continue its upward trend. The Shanghai Composite Index is poised to build on its recent gains, supported by a favorable global forecast for Asian markets. This optimism is fueled by potential de-escalation in U.S.-China tariff discussions and solid performances in the European and U.S. markets.

In summary, Huaneng Power International Inc. is part of a thriving green energy sector, as evidenced by the robust performance of the Green Energy ETF. The ETF’s strong inflows, liquidity, and favorable valuation underscore investor confidence in the sector’s growth potential.