Analysis of Capital Rotation in the Power Equipment Sector: Driven by State Grid's RMB 4 Trillion Investment and AI Computing Power Demand

Based on the latest market data, capital flow information, and institutional research opinions I have obtained, I will conduct a systematic analysis for you.

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State Grid officially announced on January 15, 2026 that fixed asset investment during the 15th Five-Year Plan period is expected to reach

, a compared to the 14th Five-Year Plan, with an annual average investment of RMB 800 billion [1][2]. This investment scale represents a leapfrog growth compared to the RMB 2.64 trillion in the 13th Five-Year Plan and RMB 2.85 trillion in the 14th Five-Year Plan.

Investment focus areas include:

• UHV DC External Transmission Channel Construction
  : Inter-regional and inter-provincial power transmission capacity will increase by
  over 30%
  compared to the end of the 14th Five-Year Plan
• Construction of New Power Systems
  : Supporting an annual new installed capacity of
  200 million kW
  for wind and solar new energy
• Comprehensive Upgrade of Distribution Networks
  : Meeting the access needs of 35 million charging facilities
• Digital and Intelligent Transformation
  : In-depth implementation of the “AI+” special action

The global artificial intelligence computing power competition is accelerating from the chip layer to the energy layer, forming a new pattern of “computing power equals electricity” [3][4].

Indicator	Data	Explanation
Growth in Data Center Electricity Consumption	25% CAGR from 2025 to 2030	Electricity consumption of data centers in China
Global Computing Power Growth	Nearly 10-fold increase from 2020 to 2030	Explosive growth in computing power demand
Global Data Center Power Consumption	Expected to reach 1500TWh in 2030	Equivalent to the annual electricity consumption of about 500 million households
AI Computing Power-to-Electricity Conversion	RMB 100 billion in computing power capital expenditure → 3-15 billion kWh of electricity	Obvious demand transmission effect

Overseas tech giants are also increasing their emphasis on electricity: Musk bluntly stated that “the future currency is watts”, Trump demanded that tech giants foot the bill for data center electricity costs, and NVIDIA held a closed-door meeting on the “AI Power Crisis” [1].

From the perspective of industrial chain data, the power equipment industry shows obvious high boom characteristics:

• Jinpan Technology
  : Signed a RMB 696 million power product supply contract with overseas customers
• Delivery Cycle
  : The delivery cycle of power transformers has been significantly extended, with a prominent supply-demand gap in the industry
• Outstanding Orders
  : Multiple manufacturers including Eaglerise, TBEA, and Jiangsu Huachen stated that their outstanding orders are full
• Capacity Layout
  : Leading enterprises are accelerating overseas capacity layout, and the industry expects the dividend period to last
  2-3 years

From the perspective of capital allocation, the power equipment sector has the following advantages:

• Relatively reasonable valuation compared to tech growth stocks
• High earnings certainty, benefiting from the dual drive of power grid investment and AI demand
• Institutional capital tends to allocate to low-risk, high-certainty targets

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Based on the market data you provided, the direction of capital outflows is clear:

(Tech Growth Stocks):

• Computer: Net outflow of
  RMB 16.202 billion
• Media: Net outflow of
  RMB 10.286 billion
• Electronics: Net outflow of
  RMB 9.972 billion
• Communications, Biomedical, etc.

(Traditional Cyclical Stocks):

• Power Equipment: Leading net inflow
• Basic Chemicals, Automobiles, Machinery and Equipment, Non-ferrous Metals

:

Net Inflow Stock	Amount (RMB 100 million)	Net Outflow Stock	Amount (RMB 100 million)
China XD Electric	23.04	Yanshan Technology	39.69
TBEA	14.58	Goldwind Science & Technology	35.30
Sanhua Intelligent Controls	11.72	Zhongji Innolight	16.60

:

1. Regulators Crack Down on Excessive Speculation
   : The China Securities Regulatory Commission (CSRC) has severely cracked down on excessive speculation, and sentiment towards theme stocks such as AI applications has cooled [5]
2. Approach of Annual Report Preview Period
   : The weight of earnings has risen again, and institutional capital tends to shift to high-certainty targets [5]
3. Increase in Margin Requirements for Financing
   : Affects the game structure of theme sectors, and the trend market driven purely by capital relay has come to an end [5]

:

1. After adjustments, the valuation risks of tech growth stocks have been partially released
2. The three core logics of the AI application side remain intact (technology iteration, application implementation, business model verification), and the market may still continue [5]

:

1. High Certainty of Power Grid Investment
   : The RMB 4 trillion investment provides continuous demand support for power equipment
2. Accelerated Global Power Grid Construction
   : Aging US power grids coupled with AIDC exacerbating power shortages, leading to strong overseas demand [4]
3. Earnings Realization Expectation
   : Orders of power grid equipment enterprises in 2025 will lay the foundation for 2026 earnings

:

1. The trend of the market expanding from “tech concentration” to “pan-tech growth” remains unchanged [6]
2. There are still intensive industry catalysts in directions such as semiconductors and computing power hardware [5]

According to institutional opinions, the core main lines of investment in 2026 still focus on two major tracks:

and [6]:

• Technology Track
  : Artificial intelligence, commercial rockets, 6G, brain-computer interfaces, low-altitude economy, solid-state batteries
• Resources Track
  : Precious metals such as gold and silver benefit from the dual drive of monetary attributes and industrial demand; industrial metals such as copper and lithium see demand surge with new demand volume

Affected by the downward industry boom and capital siphon effect, traditional blue-chip stocks

[6].

To judge the sustainability of rotation, the following indicators need to be monitored:

Indicator	Observation Direction	Critical Signal
Implementation of Power Grid Investment	UHV approval and bidding progress	Bidding data exceeds expectations → Rotation continues
Earnings Verification of Tech Stocks	Earnings realization of AI applications and semiconductors	Earnings exceed expectations → Capital flows back
Changes in Regulatory Policies	Attitude towards theme speculation	Regulatory relaxation → Growth stocks rebound
Valuation Cost-Effectiveness	Valuation ratio of tech stocks to cyclical stocks	Valuation gap narrows → Rotation ends

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1. Driving Factors for the Power Equipment Sector Are Sustainable
   : Driven by State Grid’s RMB 4 trillion investment and the explosion of AI computing power demand, the high boom in the power equipment industry is expected to last 2-3 years
2. Capital Rotation Is a Phased Rebalancing
   : The rotation from tech growth stocks to traditional cyclical stocks is a normal phenomenon in the market’s transition from “liquidity-driven” to “earnings-driven”, and it has phased characteristics
3. Technology Main Line Remains Favored in the Medium Term
   : Despite the short-term rotation to cyclical stocks, the technology track led by new productive forces remains the core main line for 2026 [5][6]

Sector	Recommendation	Rationale
Power Equipment	Allocate on Dips	Dual drive of power grid investment and AI demand, full orders, strong earnings certainty
Semiconductors/Computing Power Hardware	Increase Allocation on Dips	Intensive industry catalysts, driven by strong performance of TSMC/Samsung [5]
Non-Ferrous Metals	Hold	Strengthened monetary attributes of precious metals, surge in demand for industrial metals
Traditional Blue-Chips	Avoid	Obvious capital siphon effect, no trending opportunities within six months [6]

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[1] China.com - Why State Grid Suddenly “Accelerated”: RMB 4 Trillion Investment Attracts Attention (https://news.china.com/socialgd/10000169/20260117/49173217.html)

[2] Eastmoney - State Grid’s Investment Increases to RMB 4 Trillion During the 15th Five-Year Plan; UHV and Other Areas Remain Key (https://finance.eastmoney.com/a/202601163620923270.html)

[3] Sina Finance - Surge in Data Center Electricity Demand Puts Power Equipment Industry in the “C-position” (https://finance.sina.com.cn/roll/2026-01-09/doc-inhfswxr5862113.shtml)

[4] Eastmoney - AI Computing Power and Global Power Grid Construction Drive High Boom in Power Equipment Sector (https://caifuhao.eastmoney.com/news/20260113212206194825150)

[5] Securities Times - Weekly Strategy of Top 10 Securities Firms: Return to Earnings, Accelerated Theme Rotation (https://www.stcn.com/article/detail/3598805.html)

[6] Eastmoney - Investment Certainty in 2026: Anchor Technology and Resources, Seize Opportunities in the Second Stage of the Bull Market (https://caifuhao.eastmoney.com/news/20260116232432510194110)