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Observer
6 hours ago
- Business
- Observer
China embarks on world's largest hydropower dam, capital markets cheer
China's Premier Li Qiang announced construction had begun on what will be the world's largest hydropower dam, on the eastern rim of the Tibetan Plateau, at an estimated cost of at least $170 billion, the official Xinhua news agency said. Commencement of the hydropower project, China's most ambitious since the Three Gorges Dam on the Yangtze, was seized by Chinese markets as proof of economic stimulus, sending stock prices and bond yields higher on Monday. Made up of five cascade hydropower stations with the capacity to produce 300 billion kilowatt-hours of electricity annually, equal to the amount of electricity consumed by Britain last year, the dam will be located in the lower reaches of the Yarlung Zangbo. A section of the river tumbles 2,000 metres (6,561 feet) in a span of 50km (31 miles), offering huge hydropower potential. India and Bangladesh have already raised concerns about its possible impact on the millions of people downstream, while NGOs warned of the risk to one of the richest and most diverse environments on the plateau. Beijing has said the dam will help meet power demand in Tibet and the rest of China without having a major effect on downstream water supplies or the environment. Operations are expected sometime in the 2030s. 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 surged by their 10% daily limit. "From an investment perspective, mature hydropower projects offer bond-like dividends," Wang Zhuo, partner of Shanghai Zhuozhu Investment Management said, while cautioning that speculative buying into related stocks would inflate valuations. The project will drive demand for construction and building materials such as cement and civil explosives, 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 makes intelligent monitoring terminals. Cement maker Xizang Tianlu Co Ltd and Tibet GaoZheng Explosive Co, producer of civil explosive materials, both jumped their maximum 10%. 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 on Saturday. Government bond yields rose across the board on Monday, with the most-traded 30-year treasury futures falling to five-week lows, as investors interpreted the news as part of China's economic stimulus. The project, overseen by the newly formed state-owned China Yajiang Group, marks a major boost in public investment to help bolster economic growth as current drivers show signs of faltering. "Assuming 10 years of construction, the investment/GDP boost could reach 120 billion yuan ($16.7 billion) for a single year," said Citi in a note. "The actual economic benefits could go beyond that." China has not given an estimate on the number of jobs the project could create. The Three Gorges, which took almost two decades to complete, generated nearly a million jobs, state media reported, though it displaced at least a similar number of people. Authorities have not indicated how many people would be displaced by the Yarlung Zangbo project. The Yarlung Zangbo becomes the Brahmaputra River as it leaves Tibet and flows south into India and finally into Bangladesh. NGOs say the dam will irreversibly harm the Tibetan Plateau and hit millions of people downstream. The chief minister of Arunachal Pradesh, Pema Khandu, said earlier this year that such a colossal dam barely 50km from the border could dry out 80% of the river passing through the Indian state while potentially inundating downstream areas in Arunachal and neighbouring Assam state. Some experts also express concerns for a project in a seismically active zone.
Business Times
7 hours ago
- Business
- Business Times
China starts building world's largest hydropower dam in Tibet
[SHANGHAI] China's Premier Li Qiang announced construction had begun on what will be the world's largest hydropower dam, located on the eastern rim of the Tibetan Plateau and estimated to cost around US$170 billion, the official Xinhua news agency said. 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 within a short span of 50 km, 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 per cent to a seven-month high. Power Construction Corporation of China and Arcplus Group jumped by their 10 per cent daily limit. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 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 per cent. So did shares of Geokang Technologies, which produces intelligent monitoring terminals. Cement maker Xizang Tianlu and Tibet GaoZheng Explosive, which makes civil explosive materials, both jumped their maximum 10 per cent. 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. REUTERS
New Straits Times
8 hours ago
- Business
- New Straits Times
China embarks on world's largest hydropower dam, capital markets cheer
HONG KONG/SHANGHAI: China's Premier Li Qiang announced construction had begun on what will be the world's largest hydropower dam, on the eastern rim of the Tibetan Plateau, at an estimated cost of at least US$170 billion, the official Xinhua news agency said. Commencement of the hydropower project, China's most ambitious since the Three Gorges Dam on the Yangtze, was seized by Chinese markets as proof of economic stimulus, sending stock prices and bond yields higher on Monday. Made up of five cascade hydropower stations with the capacity to produce 300 billion kilowatt-hours of electricity annually – equal to the amount of electricity consumed by Britain last year – the dam will be located in the lower reaches of the Yarlung Zangbo. A section of the river tumbles 2,000 metres (6,561 feet) in a span of 50km (31 miles), offering huge hydropower potential. India and Bangladesh have already raised concerns about its possible impact on the millions of people downstream, while NGOs warned of the risk to one of the richest and most diverse environments on the plateau. Beijing has said the dam will help meet power demand in Tibet and the rest of China without having a major effect on downstream water supplies or the environment. Operations are expected sometime in the 2030s. China's CSI Construction & Engineering Index jumped as much as 4 per cent to a seven-month high. Power Construction Corporation of China and Arcplus Group PLC surged by their 10 per cent daily limit. "From an investment perspective, mature hydropower projects offer bond-like dividends," Wang Zhuo, partner of Shanghai Zhuozhu Investment Management said, while cautioning that speculative buying into related stocks would inflate valuations. The project will drive demand for construction and building materials such as cement and civil explosives, 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 per cent. So did shares of Geokang Technologies Co Ltd, which makes intelligent monitoring terminals. Cement maker Xizang Tianlu Co Ltd and Tibet GaoZheng Explosive Co, producer of civil explosive materials, both jumped their maximum 10 per cent. Broader 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 on Saturday. Government bond yields rose across the board on Monday, with the most-traded 30-year treasury futures falling to five-week lows, as investors interpreted the news as part of China's economic stimulus. The project, overseen by the newly formed state-owned China Yajiang Group, marks a major boost in public investment to help bolster economic growth as current drivers show signs of faltering. "Assuming 10 years of construction, the investment/GDP boost could reach 120 billion yuan (US$16.7 billion) for a single year," said Citi in a note. "The actual economic benefits could go beyond that." China has not given an estimate on the number of jobs the project could create. The Three Gorges, which took almost two decades to complete, generated nearly a million jobs, state media reported, though it displaced at least a similar number of people. Authorities have not indicated how many people would be displaced by the Yarlung Zangbo project. The Yarlung Zangbo becomes the Brahmaputra River as it leaves Tibet and flows south into India and finally into Bangladesh. NGOs say the dam will irreversibly harm the Tibetan Plateau and hit millions of people downstream. The chief minister of Arunachal Pradesh, Pema Khandu, said earlier this year that such a colossal dam barely 50km from the border could dry out 80 per cent of the river passing through the Indian state while potentially inundating downstream areas in Arunachal and neighbouring Assam state. Some experts also express concerns for a project in a seismically active zone.
Otago Daily Times
8 hours ago
- Business
- Otago Daily Times
China starts work on world's largest hydropower dam
China's Premier Li Qiang announced construction had begun on what will be the world's largest hydropower dam, on the eastern rim of the Tibetan Plateau, at an estimated cost of at least $US170 billion ($NZ285bn), the official Xinhua news agency said. Commencement of the hydropower project, China's most ambitious since the Three Gorges Dam on the Yangtze, was seized by Chinese markets as proof of economic stimulus, sending stock prices and bond yields higher on Monday. Made up of five cascade hydropower stations with the capacity to produce 300 billion kilowatt-hours of electricity annually, equal to the amount of electricity consumed by Britain last year, the dam will be located in the lower reaches of the Yarlung Zangbo. A section of the river tumbles 2000 metres in a span of 50km, offering huge hydropower potential. India and Bangladesh have already raised concerns about its possible impact on the millions of people downstream, while NGOs warned of the risk to one of the richest and most diverse environments on the plateau. Beijing has said the dam will help meet power demand in Tibet and the rest of China without having a major effect on downstream water supplies or the environment. Operations are expected sometime in the 2030s. China's CSI Construction & Engineering Index jumped as much as 4% to a seven-month high. Power Construction Corporation of China and Arcplus Group surged by their 10% daily limit. "From an investment perspective, mature hydropower projects offer bond-like dividends," Wang Zhuo, partner of Shanghai Zhuozhu Investment Management said, while cautioning that speculative buying into related stocks would inflate valuations. The project will drive demand for construction and building materials such as cement and civil explosives, Huatai Securities said in a note to clients. Shares of Beijing-listed Hunan Wuxin Tunnel Intelligent Equipment, which sells tunnel construction equipment, surged 30%. So did shares of Geokang Technologies, which makes intelligent monitoring terminals. Cement maker Xizang Tianlu and Tibet GaoZheng Explosive, producer of civil explosive materials, both jumped their maximum 10%. BROADER 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 on Saturday. Government bond yields rose across the board on Monday, with the most-traded 30-year treasury futures CTLU5 falling to five-week lows, as investors interpreted the news as part of China's economic stimulus. The project, overseen by the newly formed state-owned China Yajiang Group, marks a major boost in public investment to help bolster economic growth as current drivers show signs of faltering. "Assuming 10 years of construction, the investment/GDP boost could reach 120 billion yuan ($US16.7 billion) for a single year," said Citi in a note. "The actual economic benefits could go beyond that." China has not given an estimate on the number of jobs the project could create. The Three Gorges, which took almost two decades to complete, generated nearly a million jobs, state media reported, though it displaced at least a similar number of people. Authorities have not indicated how many people would be displaced by the Yarlung Zangbo project. The Yarlung Zangbo becomes the Brahmaputra River as it leaves Tibet and flows south into India and finally into Bangladesh. NGOs say the dam will irreversibly harm the Tibetan Plateau and hit millions of people downstream. The chief minister of Arunachal Pradesh, Pema Khandu, said earlier this year that such a colossal dam barely 50km from the border could dry out 80% of the river passing through the Indian state while potentially inundating downstream areas in Arunachal and neighbouring Assam state. Some experts also express concerns for a project in a seismically active zone.
Business Recorder
9 hours ago
- Business
- Business Recorder
China starts building world's largest hydropower dam in Tibet
HONG KONG/SHANGHAI: China's Premier Li Qiang announced construction had begun on what will be the world's largest hydropower dam, located on the eastern rim of the Tibetan Plateau and estimated to cost around $170 billion, the official Xinhua news agency said. 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.
