Recently, Hong Kong utilities have disclosed their 2025 results, according to CICC's research report.

Firstly, the permitted return rates for some regulated businesses are expected to increase in the new regulatory cycle, consolidating investment returns. Secondly, Hong Kong utilities maintained high dividends, with the 2025 dividend payout ratio ranging from 77% to 96%, and DPS remaining flat or slightly increasing by 1-2% YoY.

Hong Kong utilities primarily invest in midstream transmission and distribution segments, obtaining permitted returns under a regulatory framework over a certain period, the report stated. These stocks are characterized by heavy assets, high threshold, stable returns and strong cash flow, aligning with the typical features of the 'HALO strategy.'

In the Hong Kong region, the average net value of fixed assets increased, driving profit growth, while capital expenditure continued under clean transformation goals. HKELECTRIC-SS (02638.HK)  -0.030 (-0.459%)    Short selling $507.46K; Ratio 4.146%   and CLP HOLDINGS (00002.HK)  +0.600 (+0.812%)    Short selling $51.91M; Ratio 236.096%   continued to advance their development plans for 2024-2028.

In the UK, the permitted return rates for new round of regulated businesses increased. CK series sold assets, with the sale of the UK Power Network expected to generate over $10 billion one-off gains for CKI HOLDINGS (01038.HK)  +0.500 (+0.785%)    Short selling $43.17M; Ratio 126.759%   and POWER ASSETS (00006.HK)  +0.850 (+1.374%)    Short selling $54.19M; Ratio 127.441%   .
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-02 16:25.)

AASTOCKS Financial News