China Joins the "Triple Nuclear Energy Declaration": Accelerating Global Renaissance and Domestic Industrial Growth
Date: March 11, 2026
Sector: Utilities / Nuclear Power Equipment
Rating: Outperform (Maintained)
Analysts: Su Qianye (S1340525110004), Yang Shuaibo (S1340524070002), Sheng Wei (S1340525120008)
Source: China Post Securities Research Institute
Executive Summary
On March 10, 2026, at the Second Nuclear Energy Summit in Paris, China officially announced its accession to the "Triple Nuclear Energy Declaration." This strategic move underscores the high certainty of a global nuclear energy renaissance and highlights the pivotal role of China’s nuclear industry as a cornerstone of national infrastructure. We maintain an Outperform rating on the sector, driven by two primary catalysts: the accelerating global consensus on nuclear expansion and the domestic legislative framework established by the newly implemented Atomic Energy Law.
The global commitment to tripling nuclear capacity by 2050, now supported by 38 nations including major economies like China, Brazil, and Belgium, creates a robust long-term demand trajectory. Concurrently, China’s Atomic Energy Law, effective January 15, 2026, legally cements the "Thermal Reactor – Fast Reactor – Fusion Reactor" three-step strategy and the closed nuclear fuel cycle route. This legislative clarity is expected to accelerate the commercialization of advanced reactor technologies, particularly High-Temperature Gas-Cooled Reactors (HTGRs) and fast reactors.
We identify nuclear island main equipment suppliers as the core beneficiaries of this dual-driven growth model. Investors should focus on leading manufacturers with capabilities in advanced reactor technologies, specifically Shanghai Electric, Dongfang Electric, Harbin Electric, and Zhefu Holding.
Key Takeaways
1. Global Nuclear Renaissance: The "Triple Nuclear Energy Declaration" Gains Momentum
The global narrative around nuclear energy has shifted decisively from caution to acceleration. The "Triple Nuclear Energy Declaration," initially launched by the US and 21 other nations at COP28 in December 2023, aims to triple global nuclear energy capacity to 1,200 GW by 2050 (three times the 2020 level).
- Expanding Coalition: The declaration has seen rapid expansion in signatories. From 22 countries at inception, it grew to 31 countries during COP29 and 33 during COP30. With the recent addition of China, Brazil, and Belgium, the total number of signatory nations has reached 38.
- Cross-Industry Commitment: A significant milestone was achieved during CERAWeek 2025, where major enterprises outside the traditional nuclear sector jointly pledged support for nuclear energy for the first time. This cross-industry endorsement signals broader corporate confidence in nuclear power as a stable, low-carbon baseload solution.
- Implication for China: As a new signatory, China is positioned to leverage its mature nuclear technology for international expansion. We anticipate an acceleration in the export of Chinese nuclear technologies, specifically the "Hualong One" (PWR) and "Linglong One" (SMR) reactors, collectively termed as the "Dual Dragon Going Global" strategy.
2. Domestic Legislative Breakthrough: Implementation of the Atomic Energy Law
After a 41-year drafting process, China’s first foundational and comprehensive law in the atomic energy field, the Atomic Energy Law, officially came into effect on January 15, 2026. This legislation provides the legal bedrock for the industry’s long-term development.
- Strategic Roadmap Codified: The law formally establishes the "Thermal Reactor – Fast Reactor – Fusion Reactor" three-step development strategy and mandates the closed nuclear fuel cycle route. This removes policy ambiguity and provides a clear timeline for technological iteration.
- Accelerating Advanced Reactors: The law explicitly defines the strategic positioning of advanced reactor technologies. We expect this to drive:
- HTGR Commercialization: Transition of High-Temperature Gas-Cooled Reactor demonstration projects into full commercial operation. Notably, the Shidaowan HTGR, which commenced operations in 2023, remains the world’s first operational Generation IV nuclear power plant, giving China a first-mover advantage.
- Fast Reactor Construction: Accelerated construction of fast reactor demonstration projects.
- Fusion Energy: Spurred industrialization and commercialization efforts in fusion power.
3. Investment Focus: Core Equipment Manufacturers
The structural growth of the nuclear sector translates directly into capital expenditure on core infrastructure. The value chain’s epicenter lies with nuclear island main equipment suppliers. These companies possess the high barriers to entry, technical expertise, and manufacturing capacity required for both traditional and advanced reactor systems.
| Recommended Tickers | Company Name | Core Logic |
|---|---|---|
| Shanghai Electric | Shanghai Electric Group | Leading supplier of nuclear island equipment; strong presence in Hualong One and advanced reactor components. |
| Dongfang Electric | Dongfang Electric Corp | Key manufacturer of steam turbines and generators for nuclear plants; diversified exposure to thermal and nuclear sectors. |
| Harbin Electric | Harbin Electric Company | Major player in nuclear pump and valve systems; critical supplier for domestic nuclear projects. |
| Zhefu Holding | Zhefu Holding Co., Ltd. | Specialized in nuclear power auxiliary equipment and valves; beneficiary of increased maintenance and replacement cycles. |
Risks / Headwinds
While the outlook is positive, investors must consider the following risks:
- Technological Execution Risk: The commercialization of advanced reactors (HTGR, Fast Reactors, Fusion) involves complex engineering challenges. Any delays in technical breakthroughs or pilot project failures could slow down the anticipated growth curve.
- Regulatory & Safety Concerns: Despite the global trend, any significant nuclear safety incident globally could lead to temporary regulatory tightening or public opposition, impacting project approvals and timelines.
- Supply Chain Constraints: The rapid scaling of nuclear capacity may strain the supply chain for specialized materials (e.g., zirconium alloys, heavy forgings), potentially leading to cost overruns or delivery delays.
- Geopolitical Friction: As Chinese nuclear technology expands overseas ("Going Global"), it may face geopolitical headwinds or trade barriers in certain markets, potentially limiting the addressable market for exports.
Rating / Sector Outlook
Sector Rating: Outperform (Maintained)
- Market Context: The industry index closed at 11,569.47, approaching its 52-week high of 11,731.28, demonstrating strong relative strength against the broader market (52-week low: 6,107.84).
- Outlook: We maintain a constructive view on the nuclear power sector. The convergence of global policy support (Triple Nuclear Declaration) and domestic legal certainty (Atomic Energy Law) creates a rare "policy supercycle." The sector is transitioning from a period of steady recovery to one of accelerated growth, driven by both domestic replacements/new builds and international export opportunities.
Investment View
The nuclear energy sector is undergoing a fundamental re-rating. No longer viewed merely as a stable utility play, it is emerging as a critical growth engine within the clean energy transition and high-end manufacturing sectors.
1. The "Dual Engine" Growth Model:
Investors should recognize the dual drivers at play. Domestically, the Atomic Energy Law ensures a steady pipeline of projects and the systematic rollout of Gen IV technologies. Internationally, China’s accession to the Triple Nuclear Declaration validates its technology standards and opens doors for the "Hualong One" and "Linglong One" to compete in a expanding global market. This diversifies revenue streams for Chinese OEMs beyond the domestic cycle.
2. Premium on Advanced Technology Leaders:
Not all equipment manufacturers will benefit equally. The marginal growth and higher margins will accrue to companies capable of supplying advanced reactor components. The Shidaowan HTGR’s success proves China’s leadership in Gen IV tech. Companies like Shanghai Electric and Dongfang Electric, which have deep integration in these advanced supply chains, are better positioned to capture value than those reliant solely on legacy Gen II/III designs.
3. Long-Term Visibility:
The 2050 target of 1,200 GW global capacity implies a compound annual growth rate (CAGR) in nuclear installations that significantly outpaces historical trends. For Chinese suppliers, this represents a decade-long visibility order book. The closed fuel cycle mandate further extends the value chain into fuel processing and waste management, offering additional avenues for future monetization.
Conclusion:
We advise institutional investors to overweight the nuclear equipment sector. The combination of legislative tailwinds in China and global policy alignment provides a high-conviction investment thesis. Focus should remain on the "shovel-ready" beneficiaries: the core equipment manufacturers who are essential to building the next generation of nuclear capacity. Shanghai Electric, Dongfang Electric, Harbin Electric, and Zhefu Holding represent the most direct proxies for this structural growth story.
Disclaimer: This report is based on information available as of March 11, 2026. Past performance is not indicative of future results. Investors should conduct their own due diligence before making investment decisions.