China Mulls 3 Mega Power Firms in $855 Billion Reshuffle
- Plan said to include 8 nuclear, coal-fired power generators
- Datang International Power jumps as much as 17% in Hong Kong
Electricity pylons are seen from a car window near the Yangshan Deep Water Port in Shanghai, China, on Thursday, Jan. 31, 2013. China's economic growth accelerated for the first time in two years as government efforts to revive demand drove a rebound in industrial output, retail sales and the housing market.
Photographer: Tomohiro Ohsumi/BloombergShares of Chinese coal-fired power generators surged on Tuesday as the country was said to be considering plans to create three energy giants through mergers of eight companies with combined assets of almost 5.9 trillion yuan ($855 billion).
The proposal, which is only one option being considered as the government of President Xi Jinping seeks to restructure the state-run power sector, hasn’t been finalized and is subject to change, according to people with knowledge of the plan. The mergers are proposed for the unlisted parent companies, not the units traded in Hong Kong and Shanghai, said the people said, who asked not to be identified as the information isn’t public.