Core Viewpoint - The power sector is experiencing a decline, with major companies like Huaneng International, China Resources Power, and Huadian International seeing significant drops in their stock prices following the announcement of a new pricing mechanism for power generation capacity by the National Development and Reform Commission and the National Energy Administration [1] Group 1: Stock Performance - Huaneng International (00902) fell by 5.26%, trading at 5.4 HKD [1] - China Resources Power (00836) decreased by 3.48%, trading at 17.18 HKD [1] - Huadian International (01071) dropped by 2.91%, trading at 4.01 HKD [1] Group 2: Regulatory Changes - On January 30, the National Development and Reform Commission and the National Energy Administration issued a notice to improve the capacity pricing mechanism for power generation [1] - The notice includes provisions for optimizing the pricing mechanisms for coal, natural gas, pumped storage, and new energy storage [1] Group 3: Market Implications - According to CITIC Securities, the notice allows localities to adjust the lower limit of long-term market trading prices for coal power based on supply and demand and the variable costs of all participating units [1] - The notice encourages flexible pricing mechanisms between supply and demand parties, which may lead to a further decline in the price center for coal power in some provinces [1]