Shares of mainland power generators gained on speculation the central government would provide financial support for electricity producers by bolstering their capital bases, weakened by losses from power price controls, and compensating those that suffered damage in last year's Sichuan earthquake.
The speculation was sparked by an announcement yesterday by mainland-listed Guangxi Guiguan Electric Power, which said it had received 30 million yuan (HK$34 million) from the central government to finance post-quake reconstruction.
The company, a subsidiary of China Datang Group - the parent of listed Datang International Power Generation - said last May that two of its hydropower subsidiaries suffered a combined loss of about 30 million yuan from the quake.
That raised hopes that other listed power companies might also receive injections or handouts, but the stocks gave back most or all of their gains when that could not be confirmed.
Beijing has already injected capital into the country's struggling major airlines. Both the power and aviation sectors suffered from widespread losses because of high fuel costs, and are highly indebted.
Huaneng Power International surged 5.74 per cent before ending 2.49 per cent lower at HK$5.10. Datang International Power gained up to 8.29 per cent but closed 0.52 per cent lower at HK$3.84.