China announces 'smart' upgrade to electricity grid
Grid related shares surged after China's State Grid announced that plans for its smart grid will be published in July.
Many stocks surged to the 10 percent trading cap early in the morning, including transmission equipment producers such as Yantai Dongfang Electronics Information Industry Co.（SZ:000682）, XJ Electric Co. （SZ:000400）and transformer produers such as San Bian Science & Technology Co.（SZ:002112）.
Smart grids use digital technology to reduce costs, save energy and increase reliability of electricity supply. China's smart grid will incraese the use of ultra high-voltage transmission of electricity over long distances from power bases such as Shanxi province tocoastal areas where demand is high.
Analysts say China may spend as much as RMB 680 billion on the smart grids and overall RMB 4 trillion on power grids from 2009 to 2020. China's State Grid Corporation's investment target for 2009 is RMB 260 billion.
Other grid related shares that also surged 10 percent include Jiangsu Dongyuan Electrical Group Co.（SZ:002074）, Shenzhen Clou Electronics Co. （SZ:002121）, Guangzhou Zhiguang Electric Co. （SZ:002169), Shanghai Hi-tech Control System Co. （SZ:002184）and Shanghai Zhixin Electric Co.（SH:600517）.
Wasion Group (HK:3393), an ammeter producer, surged 24.50 percent. Northeast Electric Development Co. (HK:0042) climbed 20.34 percent. It’s reported that Warren Buffet may have invested in the company.
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