公用事业行业周报：电力辅助服务市场基本规则征求意见，水利部推进国家水网重大工程建设

Investment Rating - The industry investment rating is maintained at "Overweight" [6][12]. Core Viewpoints - The National Energy Administration has solicited public opinions on the "Basic Rules for the Electricity Auxiliary Service Market," aiming to standardize the operation and management of the auxiliary service market, further deepening electricity market reforms. The rules are designed to optimize the auxiliary service market mechanism and clarify the responsibilities of market participants, including thermal power, hydropower, energy storage, and virtual power plants [6][5]. - The Ministry of Water Resources is advancing major national water network projects and promoting market-oriented reforms in the water industry. Significant investments and construction in water infrastructure have reached historical highs, with the first water infrastructure investment trust fund (REITs) approved by the CSRC. Future plans include further advancing major water projects and digital twin water construction [6][5]. Summary by Sections Electricity Market Reform - The establishment of the auxiliary service market rules aims to enhance the flexibility and reliability of the electricity system, promoting deeper reforms in the electricity market [6][5]. Water Industry Developments - The water sector is experiencing unprecedented investment and construction activity, with a focus on competitive market reforms and the establishment of a national water network [6][5]. Investment Strategy - The report suggests focusing on hydropower leaders like Yangtze Power, which benefits from favorable water conditions, and the growing nuclear power sector, recommending companies such as China National Nuclear Corporation and China General Nuclear Power Group [6].