Merger talk boosts power firm shares

BEIJING: Shares of Chinese coalfired power generators surged yesterday 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 (RM3.71 trillion).

The proposal, which was only one option being considered as the government of President Xi Jinping sought to restructure the power sector, hadn’t been finalised and was subject to change, according to people with knowledge of the plan.

The three planned power giants would be created through the following combinations:

China Huadian and China Guodian Corp, two of the biggest coal-fired power generators, may