appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Yujie Xue

China’s construction of 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.

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.
“This project will be conducive to boosting [China’s] economy and raising the national clean energy mix,” said Citigroup analyst Pierre Lau in a research note on Tuesday. In addition to the 1.2 trillion yuan investment in construction, Citi anticipated an additional 768 billion yuan in investments to build power grids, spurred by the initiative.
As the world’s largest carbon emitter, China is rapidly expanding its renewable energy sector to meet national goals of peaking emissions by 2030 and achieving net-zero emissions by 2060, while also stabilising its power supply.
The country is the world’s leading hydropower producer. It added 14.4 gigawatts of new capacity last year and is poised to exceed its target of 120 gigawatts in pumped storage hydropower by 2030, according to data from the International Hydropower Association.
Citi expected the dam project and the substantial related investments to benefit hydropower plant and grid equipment manufacturers in China, including Dongfang Electric, Sieyuan Electric, Pinggao Group, and XJ Electric.
However, some analysts cautioned that market enthusiasm could wane in the coming weeks, given the project’s lengthy construction timeline, which could extend beyond a decade. The project has also raised concerns among downstream countries, including India, regarding water supply and environmental impact.
“While the hydro project is applauded as a significant step towards China’s decarbonisation goals, it is important for investors to monitor its environmental impact management from a long-term view,” wrote Daiwa analyst Dennis Ip and his colleagues in a note on Tuesday.


Hong Kong stocks decline after Fed raises interest rates and signals more to come

China’s AI chip stocks face crucial test as MetaX lock-up period expires

Investors prepare for ‘super-central-bank week’ as US rate increase appears done deal

Unitree’s US$30 billion stock wipe-off spurs regulatory caution on humanoid robot IPOs

China stock market

China’s mega dam project in Tibet sparks stock surge in hydropower, infrastructure sectors

The Brahmaputra River. Photo: Shutterstock

Chinese Premier Li Qiang announces the commencement of the construction of the world’s largest hydropower dam at a ceremony on Saturday. Photo: Xinhua

Cloudy with a chance of bankruptcy: US tariffs hurt China’s solar firms

 Illustration by Henry Wong

Visitors share ideas in front of a photovoltaic module exhibit at the SNEC PV Conference on June 12. Photo: Xinhua

CATL showcases its ambition to become a green energy provider at the SNEC PV Conference. Photo: Xinhua

Xiaomi guns for home appliances after disrupting smartphones and EVs. Will it succeed?

Xiaomi showcases its collection of small kitchen appliances. Photo: Getty Images

The Xiaomi pavilion at the Mobile World Congress 2025 in Barcelona, Spain. Photo: NurPhoto via Getty Images

Midea’s booth seen at the Canton Fair in Guangzhou in April. Photo: AFP

A Xiaomi store in downtown Beijing. Photo: Simon Song

Xiaomi’s SU7 SUV a hit with mainland Chinese motorists as bookings reach 240,000

Xiaomi co-founder and CEO Lei Jun speaks at the launch of the  YU7 SUV car in Beijing on May 22. Photo: AFP

The basic edition of the YU7 has a driving range of 835km. Photo: Weibo

Xpeng launches G7 ‘Super AI’ SUV, taking on Xiaomi YU7 and Tesla Model Y

Xpeng’s G7 sits next to a model of the company’s slef-developed AI chip. Photo: Weibo

A Xiaomi YU7 on display in Beijing on July 1, 2025. Photo: AFP

Business

China Business

Climate and energy

Companies

Economy

News

China Economy

China

Money & Wealth

The investment is set to benefit hydropower plant and grid equipment makers, but some analysts warn that market enthusiasm may wane soon


The investment is set to benefit hydropower plant and grid equipment makers, but some analysts warn that market enthusiasm may wane soon.


China’s mega dam project in Tibet sparks stock surge in hydropower, infrastructure sectors

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The investment is set to benefit hydropower plant and grid equipment makers, but some analysts warn that market enthusiasm may wane soon

The investment is set to benefit hydropower plant and grid equipment makers, but some analysts warn that market enthusiasm may wane soon