China starts building world's largest hydropower dam in Tibet
The dam is China's most ambitious hydropower project since the Three Gorges Dam on the Yangtze, with operations expected sometime in the 2030s.
Made up of five cascade hydropower stations, the dam will be located in the lower reaches of the Yarlung Zangbo. A section of the river falls a dramatic 2,000 metres (6,561 feet) within a short span of 50 km (31 miles), offering huge hydropower potential.
India and Bangladesh have already raised concerns about its possible impact on the millions of people who live downstream, while NGOs have warned of the risk to the environment, one of the richest and most diverse on the plateau.
Beijing has said the dam, with the capacity to produce 300 billion kilowatt-hours of electricity annually, will help meet power demand in Tibet and the rest of China without having a major effect on downstream water supplies or the environment.
China's CSI Construction & Engineering Index jumped as much as 4% to a seven-month high. Power Construction Corporation of China and Arcplus Group PLC jumped by their 10% daily limit.
Wang Zhuo, partner of Shanghai Zhuozhu Investment Management, said the project offered investors both long-term investment opportunities and a theme for short-term speculation.
'From an investment perspective, mature hydropower projects offer bond-like dividends,' Wang said.
But he cautioned that speculative buying into related stocks triggered by the announcement would inflate valuations.
The project will drive demand for construction and building materials such as cement and civil explosives, benefiting related companies, Huatai Securities said in a note to clients.
Shares of Beijing-listed Hunan Wuxin Tunnel Intelligent Equipment Co, which sells tunnel construction equipment, surged 30%. So did shares of Geokang Technologies Co Ltd, which produces intelligent monitoring terminals.
Cement maker Xizang Tianlu Co Ltd and Tibet GaoZheng Explosive Co, which makes civil explosive materials, both jumped their maximum 10%.
Downstream impact
The Chinese premier described the dam as a 'project of the century' and said special emphasis 'must be placed on ecological conservation to prevent environmental damage,' Xinhua said in its report on Saturday.
China has not given an estimate on the number of jobs the project is likely to create.
The Three Gorges Dam, which took almost two decades to complete, generated nearly a million jobs, state media reported, though at least a similar number of people were displaced by the massive project.
Authorities have not indicated how many people would be displaced by the Yarlung Zangbo project or how it would affect the local ecosystem.
NGOs including the International Campaign for Tibet say the dam will irreversibly harm the Tibetan Plateau and that millions of people downstream will face severe disruptions to their livelihoods.
The Yarlung Zangbo becomes the Brahmaputra River as it leaves Tibet and flows south into India's states of Arunachal Pradesh and Assam and finally into Bangladesh.
China has already started hydropower generation on the upper reaches of the Yarlung Zangbo, which flows from the west to the east of Tibet.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Copper edges higher, others slip on uncertainty
LONDON: Copper prices drifted higher on Tuesday, buoyed by hopes for firmer Chinese demand, but investors were cautious about the impact of tariffs on economic growth and inflation. The three-month copper contract on the London Metal Exchange added 0.2% to $9,875 a metric ton in official open-outcry trading, having hit its highest in nearly two weeks in the previous session. 'The Chinese government's working plans to stabilize industrial growth and the launch of the giant Tibet hydropower plant are all positive signals to the metals market,' a Beijing-based futures analyst said. Other LME base metals were weaker amid concerns about negotiations ahead of an August 1 deadline for countries to secure trade deals with the U.S. or face steep tariffs. 'There are a lot of reasons to be cautious for the month ahead. We might see a pullback in terms of the base metals,' said Dan Smith, managing director at Commodity Market Analytics. 'I think the next month or two could be pretty interesting with all this pressure on the Federal Reserve to cut rates, but actually inflationary pressure is potentially building in the U.S.' Zinc prices hit four-month peak The period until September is also a seasonally weak period for demand, Smith added. On the Shanghai Futures Exchange, however, aluminium prices hit their highest since November, with the most active contract rising 0.75% to 20,900 yuan ($2,913.26) a ton. 'Aluminium fundamentals are the most solid among metals in China,' a Shanghai-based metals analyst at a futures company said. LME aluminium slipped 0.3% in official activity to $2,638 a ton, zinc eased 0.4% to $2,828, lead lost 0.5% to $2,005.50, nickel dipped 0.3% to $15,470 and tin fell 0.3% to $33,695.
Business Recorder
7 hours ago
- Business Recorder
Shanghai aluminium hits nearly 9-month high on prospect of better China demand
SINGAPORE: The most-traded aluminium contract on the Shanghai Futures Exchange on Tuesday hit the highest since November on possibly better demand for metals from China as authorities vow to stabilise industrial growth, including metals. SHFE aluminium rose 0.75% to 20,900 yuan ($2,913.26) a ton by 0702 GMT, or the highest since November 12. 'Aluminium fundamentals are the most solid among metals in China, especially being the only metal with a smelting capacity capped at 45 million tons, and alumina price surge has also been supportive,' a Shanghai-based metals analyst at a futures company said. SHFE alumina gained 4.23% to 3,452 yuan a ton, or the highest since Feb 26, and aluminium stocks at the SHFE-monitored warehouses totalled 108,822 tons by July 18, or the lowest since February 2024 albeit three consecutive weeks of rebounds. 'The Chinese government's working plans to stabilize industrial growth and the launch of the giant Tibet hydropower plant are all positive signals to the metals market, with the prospect of the country's metals demand boosting the sentiment,' a Beijing-based futures analyst at a futures company said. However, it's unclear how much actual demand will materialise, the analyst added. A Shanghai analyst echoed the view, saying, 'Amid all the uncertainties, such news sounds definite and positive, which may support the commodities futures market for a while.' On July 19, China began building the world's largest hydropower dam on the eastern rim of the Tibetan Plateau at an estimated cost of at least $170 billion. Meanwhile, SHFE nickel gained 1.51% to 123,530 yuan a ton, tin rose 1.11% to 268,520 yuan, zinc grew 0.7% to 22,945 yuan, being the highest since April 2, copper added 0.61% to 79,740 yuan, while lead ticked down 0.21% to 16,900 yuan. On the London Metals Exchange, the three-month zinc gained 0.14% to $2,842.5 a ton, tin inched up 0.1% to $33,845, and copper added 0.07% to $9,866.5, while lead ebbed 0.55% to $2,003.5, nickel fell 0.18% to $15,495, and aliuminium traded flat at $2,645.5.
Business Recorder
8 hours ago
- Business Recorder
China's Q2 smartphone shipments down 2.4%, says Counterpoint
BEIJING: Smartphone shipments in China were down 2.4% for the second quarter compared with a year ago, Counterpoint Research said on Tuesday. Apple's sales in China fell 1.6% year-on-year while Chinese mobile maker Huawei's sales rose 17.6%, Counterpoint said in a press statement. Huawei, the top vendor had a shipment share of 18.1%, followed by Vivo, Oppo and Xiaomi.
