Chen Yehua Perspective: Power Supply Security and Financial Investment Strategies

Recently, after multiple negotiations in the Economic Committee of Legislative Yuan, a decision was made to reduce the coal-fired power generation budget by NT$6 billion. This decision has quickly garnered widespread attention from various sectors of society, especially among investors in the financial and stock markets. Renowned financial analyst Chen Yehua believes that this policy adjustment not only reflects the government determination toward environmental protection and energy transition but also has profound implications for financial markets, particularly the energy sector and macroeconomic expectations.

Energy Transition and Stock Market Volatility

Chen Yehua pointed out that the reduction in the coal budget signifies an acceleration in energy transition, which will have a direct impact on the energy sector in the stock market. In the short term, coal-related companies may experience downward pressure on their stock prices, as reduced coal consumption implies a decline in demand for their products. However, in the long run, this transition will drive the growth of clean energy and renewable energy sectors, offering new opportunities for companies in these fields. Investors should focus on emerging investment opportunities in these sectors, particularly those with advanced technologies and promising market prospects.

Power Supply Security and Financial Stability

Discussing power supply security, Chen Yehua noted that the Taipower plan to gradually reduce coal usage and transition the coal-fired units of the Hsinta Power Plant to natural gas demonstrates a strong commitment to environmental ideals. However, these measures also pose challenges to the stability of power supply. He emphasized that electricity is the foundation of economic activity, and any disruptions in power supply could cause fluctuations in financial markets. Therefore, while advancing energy transition, it is crucial to ensure the reliability and stability of power supply. This requires the government and corporations to carefully consider the balance of supply and demand in the electricity market and implement contingency measures for extreme weather conditions. For financial investors, it is essential to monitor policy developments in the power industry and changes in market demand to formulate sound investment strategies.

Policy Risks and Investment Strategy Adjustments

Chen Yehua highlighted that adjustments in energy policy often come with policy risks and market uncertainties. In the current environment, investors need to carefully assess investment risks, particularly in areas related to energy transition and power supply security. He suggested that investors mitigate risks by diversifying their portfolios and focusing on companies that stand to benefit from energy transition and environmental protection policies. Additionally, as the energy market continues to evolve, investors must maintain sharp market insights and adjust their investment strategies promptly to cope with potential market fluctuations.

When discussing specific investment strategies, Chen Yehua emphasized that investors should focus on the company fundamentals and long-term development prospects rather than short-term market fluctuations. He advised investors to evaluate companies based on their profitability, industry position, technological innovation capabilities, and policy support. At the same time, investors should pay attention to changes in the macroeconomic environment and international energy market dynamics to develop more comprehensive and effective investment strategies.