Transformer exports are experiencing significant growth, and the fundamentals of power grid equipment remain solid. A phase of correction presents a window for strategic positioning.

April 7, the three major A-share index benchmarks rose across the board, with the power sector moving in a slight range. As of 10:09, the Huaxia Power Grid Equipment ETF (159326) was up 0.27%, the Huaxia Green Energy ETF (562550) was down 0.17%. Trading value was both ranked first within their category. The Huaxia Power Grid Equipment ETF’s holdings included Tongguang Cable, which was up more than 11%, while Dongcai Technology, Jinli Huadian, Tongda Shares, Huatong Cable, Hengtong Optoelectronics, Zhongyuan Shares, and others also rose along.

Against the backdrop of an AI computing power boom, demand for electricity for data centers has surged, the fundamentals of the power grid equipment industry are solid, the long-term growth logic is clear, and any short-term pullback may present a window for positioning.

CITIC Securities Construction Investment said that China’s power equipment going overseas has entered a golden development period. January to February 2026 customs data show that the export growth rate of China’s power transformers has remained above 40%, continuing a relatively high-growth trend, which consistently confirms strong overseas demand. By market segment, the U.S. and Europe are global leaders in the demand scale for transformers; demand remains at a high level of momentum while supply-demand is relatively tight. Chinese companies’ North American expansion has maintained high growth, and is expected to keep increasing market penetration rates. With Europe and the U.S. “siphoning” global capacity, Chinese companies are seeing a major volume ramp-up in the Middle East. In 2025, the value of China’s exports of power transformers to Saudi Arabia exceeded 6 billion yuan. We expect that demand in the Europe and U.S. markets will continue to be highly strong; with demand increasing in non-U.S. markets such as the Middle East, alongside Europe and the U.S. siphoning global capacity, Chinese companies will have plenty of room to do well.

AI computing power boom, global power grid upgrades — Huaxia Power Grid Equipment ETF (159326): It is the only ETF in the entire market that tracks the CSI Power Grid Equipment theme index. In the Shenwan secondary industry classification, the power grid equipment content is over 75%, making it the purest power-grid index in the entire market. Its smart grid weighting is as high as 90%, and its ultra-high-voltage weighting is as high as 70%, both being the highest in the entire market.

Green power as the main energy supply for data centers — Huaxia Green Energy ETF (562550): It has the largest fund size in the same index, tracking the CSI Green Power Index. In the Shenwan secondary industry classification, the power content is over 99%, making it the “purest” power-related index in the entire market. It bundles power leading enterprises in one click—not only clean-energy companies represented by hydropower, wind power, and solar power generation, but also energy-transition samples such as thermal power and nuclear power.

The Daily Economic News