Core Viewpoint - The investment logic in the power industry has evolved into a tightly integrated ecological loop, driven by the increasing demand for electricity from AI applications and the need for stable and green energy supply [1][41]. Generation Segment - The power sector can be divided into three segments: generation, transmission, and storage [6]. - The distinction between traditional power and green power is crucial; traditional power includes all forms of electricity generation, while green power focuses on cleaner, low-carbon sources [8]. - The core attribute of the power index is its coverage of public utilities and high dividends, making it a defensive asset [10][12]. - Major constituents of the power index include companies like Changjiang Electric Power and China Nuclear Power, with respective weights of 8.81% and 7.56% [13]. Green Power Index - The National Green Power Index is more focused on clean energy operations, with a strong correlation to green power trading mechanisms and carbon neutrality policies [15]. - The demand for green power is rigid due to AI's expansion, with regulations requiring new data centers to source over 80% of their energy from green power [15]. - The National Green Power Index has a lower proportion of thermal power stocks compared to the China Securities Green Power Index, which includes a significant amount of thermal power [21]. Transmission Segment - The transmission segment, represented by grid equipment, shows greater growth elasticity compared to the generation segment due to the high demands of AI on electricity [27][28]. - The State Grid plans to invest 4 trillion yuan in fixed assets from 2026 to 2030, a 40% increase from the previous five-year plan, indicating significant growth potential in this area [28][29]. - The market has two main indices tracking grid equipment: the China Securities Grid Equipment Theme Index and the Hang Seng A-Share Grid Equipment Index, which have shown different performance due to their constituent stocks [30]. Storage Segment - Energy storage is becoming increasingly important as it stabilizes the supply from renewable sources, which can be intermittent [36]. - The geopolitical landscape has highlighted the importance of energy security, making the integration of solar and storage solutions more attractive [36]. - The investment logic for energy storage is being elevated due to the dual catalysts of energy security and the demands of AI [36]. Overall Investment Outlook - The power investment ecosystem is characterized by a stable generation base, capital expenditure benefits from grid equipment, and explosive growth in energy storage driven by AI and energy security needs [41].

Group 1: Report Industry Investment Rating - No relevant information Group 2: Core Viewpoints of the Report - The strategy is based on two research reports, constructing a strategy portfolio of industry and theme ETFs [2] - From 20260302 - 20260306, the strategy's cumulative net return was about -2.24%, and the excess return relative to the CSI 300 ETF was about -1.01%. From October 14, 2024, the out - of - sample cumulative return of the strategy was about 35.44%, and the cumulative excess relative to the CSI 300 ETF was about 11.95% [3] - In the week of March 9, 2026, the model recommends allocating sectors such as joint - stock banks, power, and securities. The strategy will newly hold products like Bank ETF, Green Power ETF, etc., and continue to hold products like Coal ETF [12] Group 3: Summary by Relevant Catalogs ETF Strategy Portfolio Information - The strategy portfolio includes multiple ETFs, such as Bank ETF (market value: 14.61 billion yuan), Green Power ETF (market value: 5.13 billion yuan), etc. The holding situation includes调入 (newly included) and 继续持有 (continue to hold). Different ETFs have different heavy - position Shenwan industries and corresponding weights, as well as weekly and daily timing signals [3] Performance Tracking - During 20260302 - 20260306, the strategy's cumulative net return was about -2.24%, and the excess return relative to the CSI 300 ETF was about -1.01%. From October 14, 2024, the out - of - sample cumulative return of the strategy was about 35.44%, and the cumulative excess relative to the CSI 300 ETF was about 11.95% [3] Future Recommended Allocation - In the week of March 9, 2026, the model recommends allocating sectors such as joint - stock banks, power, and securities. The strategy will newly hold products like Bank ETF, Green Power ETF, Financial Real Estate ETF Guotou Ruixin, Grid Equipment ETF, Central Enterprise ETF ICBC, etc., and continue to hold products like Coal ETF [12]

Market Overview - The Shanghai Composite Index rose by 0.39%, while the ChiNext Index fell by 1.04% [1] - The total trading volume in the Shanghai, Shenzhen, and Beijing markets was 25,055 billion yuan, a decrease of 512 billion yuan compared to the previous day [1] - Over 3,200 stocks across the three markets experienced gains [1] Sector Performance - Rare metal stocks saw a surge, with significant increases in magnesium and tungsten stocks [1] - The rare metal ETFs, including the Rare Metal ETF and Rare Earth ETF, reported gains of 4.68% and 4.11% respectively [1] - The power sector showed strength, with the Power ETF and Green Power ETF rising by 2.73% and 2.53% respectively [1] - The steel sector also performed well, with the Steel ETF increasing by 2.45% [1] Declining Sectors - The ChiNext Growth ETF and the Deep Growth ETF both fell by 2% [1] - The semiconductor sector experienced declines, with the Semiconductor Equipment ETF and the Sci-Tech Semiconductor ETF dropping by 2.16% and 2.15% respectively [1]

Core Viewpoint - The A-share market experienced slight adjustments on February 27, with the power sector showing strong performance, particularly in green energy ETFs, amid a significant increase in electricity consumption by global data centers driven by AI computing power [1]. Group 1: Market Performance - The three major A-share indices saw minor adjustments, while the electric power sector rose against the trend [1]. - Green Energy ETF (562550) increased by 2.7%, and Public Utility ETF (159301) rose by 2.46% [1]. - Key stocks in the green energy ETF, including GCL-Poly Energy, Ganeng Co., Henan Energy, Huayin Electric Power, and Jinkai New Energy, reached their daily limit [1]. Group 2: Industry Trends - The global electricity consumption by data centers is projected to surge, with the IEA forecasting it to reach approximately 945 TWh by 2030, more than doubling from 415 TWh in 2024, reflecting a compound annual growth rate of about 15% from 2024 to 2030 [1]. - The "Special Action Plan for the Green and Low-Carbon Development of Data Centers" mandates that by the end of 2025, over 80% of the electricity used in newly built national hub data centers must come from green energy [1]. - The policy document from the Central Committee emphasizes carbon reduction targets and the development of a new energy system, indicating that companies in energy storage, wind power, and grid sectors are likely to benefit continuously from these directives [1].

Core Viewpoint - The A-share market is experiencing a rebound, particularly in the power grid equipment sector, driven by significant investments and policy support for the electricity market and infrastructure upgrades [1][2]. Group 1: Market Performance - The power grid equipment ETF has seen a rise of 3.81%, with a trading volume reaching 984 million yuan, making it the largest ETF in the market [1]. - Key stocks in the sector, such as Hanlan Co., Ltd. and Sifang Co., Ltd., have hit the daily limit, while others like Jinpan Technology and Igor have increased by over 9% [1]. Group 2: Policy and Investment Drivers - High-level meetings have emphasized the need for state-owned enterprises to expand investments in computing power and promote the synergy between computing and electricity [1]. - The State Council has issued implementation opinions to enhance the national unified electricity market system, outlining goals for the next 5-10 years, which will benefit grid construction, electricity trading, energy storage, and renewable energy generation [1]. Group 3: Long-term Industry Outlook - The global investment in power grids is expected to grow due to the increasing share of wind and solar power, with a significant demand for grid upgrades in developed economies where equipment is often over 20 years old [2]. - Domestic power grid equipment companies are likely to benefit from an upward shift in investment growth rates, while overseas export business is expected to maintain stable growth [2]. Group 4: Related Products - The power grid equipment ETF tracks the China Securities Power Grid Equipment Index, with a high weighting of 90% in smart grid and 67% in ultra-high voltage, the highest in the market [3]. - The green energy ETF includes leading companies in clean energy, while the public utility ETF has a 90.8% weighting in the electricity sector, characterized by high dividends and stable growth [3].

Group 1 - The A-share market experienced slight fluctuations on January 27, with the ChiNext Index and Shanghai Composite Index turning positive, while the electric grid equipment sector saw a strong afternoon rally [1] - The Electric Grid Equipment ETF (159326) recorded a decline of 1.85% with a trading volume of 1.167 billion yuan, and its holdings, including Dongfang Cable, Far East Holdings, Ping An Electric, and Baiyun Electric, saw increases [1] - The Electric Grid Equipment ETF has seen net inflows for 13 consecutive trading days, totaling over 12.6 billion yuan, reaching a new high of 17.545 billion yuan, making it the largest power-related ETF in the market [1] Group 2 - According to Everbright Securities, global investment in electric grids is expected to continue growing to address the impact of increasing shares of wind and solar power on the grid, indicating a long-term bullish outlook for global grid investment [2] - On the generation side, the rapid growth of wind and solar industries has led to a significant increase in investment in power generation, outpacing grid investment, which necessitates increased spending on grid infrastructure to accommodate the rising share of renewable energy [2] - The Electric Grid Equipment ETF (159326) is the only ETF tracking the CSI Electric Grid Equipment Theme Index, with a strong representation in sectors such as transmission and transformation equipment, grid automation, and communication cables, featuring a high weighting of 88% in smart grids and 65% in ultra-high voltage [2]

Group 1 - The energy sector is experiencing a significant rally, with the photovoltaic sector leading the gains, as evidenced by the 5.57% increase in the Huaxia Photovoltaic ETF and a 3.53% rise in the Huaxia New Energy ETF [1] - NVIDIA's founder Jensen Huang presented the "five-layer cake" theory of AI at the Davos World Economic Forum, emphasizing that energy is the "fuel" for AI, and that substantial investments in infrastructure, amounting to trillions of dollars, are necessary to support AI development [2] - Elon Musk announced at the Davos Forum that Tesla and SpaceX plan to build a total of 200GW of photovoltaic capacity in the U.S. over the next three years, significantly exceeding market expectations of 10-20GW annually, marking a strategic shift in the photovoltaic industry towards "AI computing power + energy infrastructure" [2] Group 2 - The Electric Grid Equipment ETF (159326) has over 60% weight in ultra-high voltage, 55% in smart grid, and 14% in controllable nuclear fusion, with key stocks including State Grid NARI, TBEA, and Sifang Electric. This ETF has seen a net inflow of 11.7 billion yuan since the beginning of the year, ranking first in its category [3] - The Huaxia Photovoltaic ETF (515370) covers high-purity photovoltaic industries, with key stocks such as TBEA, LONGi Green Energy, and Sungrow Power Supply [3] - The Huaxia New Energy ETF (159368) has over 70% weight in energy storage and solid-state batteries, featuring key stocks like CATL, Inovance Technology, and EVE Energy [3] - The Green Power ETF (562550) focuses on the entire electricity transition chain, with core stocks including Yangtze Power and Three Gorges Energy, which are major players in hydropower and renewable energy operations in China [3]

Core Viewpoint - Nomura Orient International Securities is optimistic about the investment opportunities in the power equipment industry in 2026, driven by domestic demand and overseas expansion [1] Domestic Demand - A super cycle of electricity investment is anticipated, with the State Grid's fixed asset investment expected to reach 4 trillion yuan during the 14th Five-Year Plan period (2026-2030), representing a 40% increase compared to the 13th Five-Year Plan [1] - The investment will focus on building a new type of power system [1] Overseas Demand - The industry is expected to benefit from a long-term overseas demand cycle, with significant growth in electricity load in the U.S. and pressures from aging power grids and AI data center construction [1] - Major European power companies are increasing their capital expenditure plans [1] - Domestic companies are likely to capture the spillover benefits from overseas demand due to shortages of raw materials and skilled labor faced by foreign power equipment firms [1] Energy Storage Growth - The company is optimistic about the unexpected growth in U.S. energy storage in 2026, which is beginning to enter a realizable phase [1] Green Power ETF - The Green Power ETF (159669) tracks the Green Power Index (399438), which selects listed companies involved in clean energy generation, including hydropower, wind power, solar power, and nuclear power, focusing on low-carbon attributes [1]

Group 1 - The core viewpoint is that the electricity market reform in China is entering a critical phase, with a restructuring of the profitability model for thermal power generation [1] - By 2026, the national policy mandates that the capacity electricity price for coal power must recover fixed costs at a rate of no less than 50%, with specific regions like Gansu and Yunnan setting this rate at 330 yuan per kilowatt per year [1] - The policy released in 2025 promotes more flexible and refined medium- to long-term trading, mentioning time-segment trading and continuous market opening, aiming to align price limits of short-cycle medium- to long-term trading with spot trading [1] Group 2 - The provincial electricity spot market in China has achieved near-complete coverage, with relatively wide price limits, allowing for price elasticity and better realization of the regulatory value of thermal power [1] - The cost side indicates a further decline in the coal price center in 2025, and the marketization of long-term contracts for electric coal is expected to improve [1] - Thermal power is gradually transitioning from "output" to "capacity," with significant increases in thermal power production since early 2025, and a potential peak in new thermal power unit commissioning expected between 2025 and 2026 [1] Group 3 - The Green Power ETF (159669) tracks the Green Power Index (399438), which selects listed companies involved in clean energy generation such as hydropower, wind power, solar power, and nuclear power [1] - The index aims to reflect the overall performance of listed companies related to green power, primarily consisting of low-carbon attribute power enterprises, exhibiting strong defensive characteristics and stable cash flow [1]

Core Viewpoint - The article emphasizes the importance of green finance and sustainable investment as a strategic choice for high-quality development, aligning with national "dual carbon" goals and the financial industry's transition towards sustainability [1][2]. Group 1: ESG Integration - The company has established ESG (Environmental, Social, and Governance) as a core development strategy, ensuring it is embedded in investment decision-making and operational management processes [1][2]. - Since becoming a signatory of the UN Principles for Responsible Investment (PRI) in 2022, the company has achieved a five-star rating in various dimensions of ESG practice in the 2024 PRI assessment [2]. - An ESG research team has been set up to formulate sustainable investment goals and ensure the integration of ESG principles throughout the investment research process [2][4]. Group 2: Green Financial Framework - The company has developed a rigorous investment research framework to incorporate green finance principles into all stages of investment decision-making, utilizing positive and negative screening methods alongside ESG integration [4]. - The investment decision-making process includes a comprehensive evaluation of the green governance performance of investment targets, enhancing risk management related to green development [4]. Group 3: Product Innovation - The company focuses on energy transformation and the development of a new energy system, creating diverse products that support green industries and facilitate capital flow into sustainable sectors [6]. - A wide range of green financial products is offered, including various ETFs and actively managed funds, aimed at providing stable funding for green industry development and offering investors diverse options [6][5]. Group 4: Collaborative Ecosystem - The company aims to enhance the ESG investment ecosystem through product innovation, technology application, and industry collaboration, promoting a multi-faceted approach to green finance [7]. - By leveraging big data and AI, the company seeks to improve risk assessment and yield analysis for green projects, enhancing the efficiency of environmental information evaluation [7]. - The company plans to engage in industry forums and initiatives to foster collaboration among investment institutions, enterprises, rating agencies, and regulatory bodies, driving the development of green finance [7].