Power stocks such as Huaneng Power (0902) and Harbin Electric (1133) are expected to benefit from the restart of China's largest nuclear power facility after a two-year halt. Construction of the nuclear power project in Rongcheng, Shandong province, resumed at the end of last month, the Beijing-based Economic Observer reported. The project, was approved in March 2011 but has been stalled since the Fukushima nuclear power plant disaster in Japan.
China Huaneng Group, parent company of Huaneng Power (0902), is the biggest investor in the project with total investments of 100 billion yuan (HK$124 billion).
"The station will be more secure and cost effective than previous projects," a spokesperson of Huaneng Group said.
Huaneng owns a 47.5 percent stake in the project, with another 32.5 percent held by China Nuclear Engineering Group Co and the remaining 20 percent by Tsinghua University.
"Related power stocks could benefit from the resumption of the energy development," said Ample Finance Group director Alex Wong Kwok-ying. "Even if the investment turns out to be less than planned, the market will still stay positive on the country's determination to restart the project."
Local listed nuclear energy stocks include Dongfang Electric Corp (1072), CGN Mining (1164), China Nuclear Industry 23 International Corp (0611) and CNNC International (2302). NATALLIE CAI
