The part of capital in market began to flow into power shares in recent two days as the China Life Insurance perform ordinary.

Hong Kong-listed Chinese power share began to boom from this June, driven by the new system of Coal and Power ties. China Resources Power performed best in many power enterprises as its return rate of shares is the highest in power shares and in coming 3 years, its power capability will increase 12% each year.

China Power may be a black horse in Chinese power shares, which expanding speed of output capability in future 3 years is the fastest in sector - an increase of 25% each year. Securities sector sources expected its return rate will improve to 18% in 2008 from 95 in 2005.

Huadian Power International Corporation which stock price rose by 7.35 yestoday, is expected a fast growth in output capability in coming 3 years, lower only than China Power, but CLSA estimated its return rate couldn't improve greatly.

For the largest-size Huaneng Power, its performance was stable, mainly as its future growth in power output capability only gains 10%, the lowest in Chinese power enterprises.

The power shares keeps rising recently and has entered the stage of over-buy, which investment value isn't large. You can pay attention to power equipments shares which performance were weak in China index rising wave in past three month, and till yestody, seen a great size growth. They are always beloved by fund managers from 2005 to the first half of this year, which stocks' prices rose for several times, but the situation come to an end with the investors' expection which the development of many large new power plants will slow the growth.

China