KUALA LUMPUR, Feb 4 (Bernama) -- Bursa Malaysia erased early gains to end lower today as profit-taking emerged following recent gains. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 5.44 points, or 0.31 per cent, to 1,742.82 from yesterday’s close of 1,748.26. The market bellwether opened 1.84 points lower at 1,746.42, and subsequently hit an intraday high of 1,751.22 in early trade before slipping to its day’s low of 1,740.49 during the mid-afternoon session. In the broader market, losers outpaced gainers 602 to 462, with 558 counters unchanged, 1,013 counters untraded and six suspended. Turnover declined to 2.59 billion shares valued at RM2.86 billion from yesterday's 3.25 billion shares valued at RM3.34 billion.
Simple Summary
China’s grid investment hit a record high in 2025 and is set to keep rising through 2030, as Beijing moves to clear power transmission bottlenecks, support AI-driven electricity demand, and integrate massive renewable capacity.
What’s Happening
China’s electricity grid spending climbed 5% to 639.5 billion yuan in 2025, according to the China Electricity Council.
This contrasts with slower investment in new power generation, where solar development has faced recent constraints.
Who’s Driving the Spend
China’s two dominant grid operators:
State Grid Corp of China
China Southern Power Grid Co
have steadily lifted capital expenditure, with combined budgets nearing 1 trillion yuan in 2026 and expected to grow through the end of the decade.
Where the Money Is Going
Key focus areas include:
Ultra-high-voltage (UHV) transmission lines, linking over 420GW of capacity by 2030
Expansion of the West-to-East power delivery programme
Smart mini-grids and distribution networks to integrate about 900GW of small, scattered power plants
Supporting AI data centres, which are driving rapid growth in electricity demand
China currently operates 45 UHV lines, with brokers expecting 7–9 new projects to be approved this year, according to Galaxy Securities Co.
Market Impact
Grid expansion has boosted local electric-equipment makers
Transformer shortages globally have increased pricing power
Grid-related stocks are attracting interest as AI infrastructure spending accelerates
Bottom Line
China’s record grid spending highlights a strategic shift from generation to transmission, ensuring power can flow efficiently to where it’s needed. With AI, renewables, and regional imbalances driving demand, grid infrastructure is emerging as a long-term growth pillar.
Key Takeaways
Grid investment hit a record high in 2025
Spending momentum extends through 2030
UHV lines and smart grids are top priorities
AI power demand is a key catalyst
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