- Baoping Qiao, the Chairman of China Guodian Corporation, recently stated that the company plans to cut investment by 20% to RMB 44.8 billion in 2017, as reported by Stockstar.com.
- The company also plans to suspend 10 projects in order to restrict the scale of investment in thermal power generation.
Why It Matters:
- China Guodian Corporation is one of the five largest Chinese power producers and is the parent company of GD Power Development Co. (600795.SS). In 2016, the company generated total electricity of 505.2 billion kWh. The company plans to generate 507 billion kWh of electricity in 2017 but with reduced dependency on coal burning.
- The 20% cut in investment will mainly be in thermal power generation. This action is in line with Chinese government’s policy of cutting redundant productivity and relieving air pollution.
- Currently, renewable energy accounts for 30.3% of total power generated by China Guodian Corporation.