China's electricity fell 1% but Credit Suisse is a highly-trusted HK $3.5

Chinese electricity fell back this morning, with shares falling 1.12% to HK $2.64 and trading 17.46 million shares.　　Credit Suisse issued a report that raised its target price from HK $3.14 to HK $3.5, a price premium of 33%. Credit Suisse points to a 37% and a 67% per cent increase in China's electricity budget for the 2009-10 fiscal year, in view of a cut in coal cost forecasts.　　Credit Suisse cut China's 2009 contract coal price forecast, which is expected to fall 5% from a year earlier, forecast an increase of 2% per cent, and is currently expected to increase by 4% per cent from the previous year, with a forecast of an increase of 20% per cent in 2010. Credit Suisse notes that the value of about HK $0.7 is derived from the upcoming five-ling hydropower, which is expected to be close to announcing the completion of the deal. Said China's electricity valuations are more deeply discounted than those of its peers, and are expected to be revalued after completion of the acquisition activity.