China's mega dam project in Tibet sparks stock surge in hydropower, infrastructure sectors
the world's largest hydropower dam in Tibet has boosted related stocks, as analysts predict that infrastructure construction companies, energy developers, and power grid equipment manufacturers would benefit from the substantial investment into what Beijing calls the 'project of the century'.
Chinese Premier Li Qiang on Saturday announced the start of the project, situated on the lower reaches of the Yarlung Tsangpo River, which becomes the Brahmaputra River as it leaves Tibet and flows south into India and finally into Bangladesh, state news agency Xinhua reported.
The project features five cascade hydropower stations, with a total estimated investment of about 1.2 trillion yuan (US$167 billion) and an anticipated annual electricity generation capacity of 300,000 gigawatt-hours, according to Xinhua.
This makes it the world's largest hydropower facility, with five times the investment and three times the capacity of China's current largest dam, the Three Gorges Dam.
Stock prices in China's infrastructure construction and hydropower sectors surged when trading resumed on Monday following the announcement.
Chinese Premier Li Qiang announces the commencement of the construction of the world's largest hydropower dam at a ceremony on Saturday. Photo: Xinhua
Shares of Power Construction Corporation of China, a state-owned developer involved in the project, jumped 10 per cent to reach the daily limit on both Monday and Tuesday. Companies specialising in hydro equipment, such as Dongfang Electric, and cement firms, including Huaxin, also saw significant price gains on Monday.
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