Huaneng Power International Inc. (HNP:US), the publicly traded unit of China’s largest electricity producer, rose to the highest in three months as coal prices fell and the government will subsidize energy-saving appliance purchases.
American depositary receipts of Huaneng, which owns and operates power plants throughout China, gained 3.9 percent to $25.97 in New York, its highest price since Feb. 17. Huaneng Power shares traded in Hong Kong gained 1.8 percent to HK$5.07, or the equivalent of 65 U.S. cents. Each ADR represents 40 shares.
China’s benchmark power-station coal price at Qinhuangdao port fell the most in five months yesterday as a slowdown in the world’s second-biggest economy has cut demand for electricity and caused stockpiles across the country to surge. China will offer subsidies for the purchase of energy-saving home appliances, the Ministry of Finance said in a statement yesterday.
“The move down in commodity prices is helping companies such as Huaneng, which uses a lot of coal,” Greg Lesko, who helps oversee over $800 million at Deltec Asset Management in New York, said in a phone interview. “Concerning Chinese growth, we’re seeing smaller, modest easing measures, and we’re likely to see more of those as the government has made clear it wants to keep the economy going, though probably not at the pace it grew in the past.”
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