Power needs set to spark Dongfang

Power needs set to spark Dongfang 
Wednesday, February 15, 2012
The Standard


A commemorative note issue by the Bank of China (3988) to mark its centenary sparked a speculative frenzy in Hong Kong and China.


This shows that many people have cash, but lack the confidence to buy stocks.


The Hang Seng Index has rebounded 5,000 points from October but not every share has outperformed the index. One of my favorites, Dongfang Electric (1072), is among the laggards.


People are still worried that nuclear power development will slow worldwide following the debacle at the Fukushima Dai Ichi nuclear plant in Japan last March.


But to cope with soaring power demand, I am not convinced that solar, hydro and wind energy sources can suffice for China. (Disagree 100%)



http://www.facebook.com/nuclearfree
http://www.facebook.com/nukefree



Beijing reportedly outlined an ambitious national nuclear power development plan for the next 10 years. At present, the domestic nuclear power sector has a capacity of 11.9 gigawatts.


The National Energy Administration is targeting 80 GW generating capacity by 2020.


Sooner or later, China will resume approving new nuclear projects.


Apart from Dongfang, keep an eye on Harbin Electric (1133). Dr Check and/or The Standard bear no responsibility for any investment decision made based on the views expressed in this column.