Golden Sachs: Datang Power investment on Gansu power plant bears big risk

Golden Sachs pointed out that the investment on a Gansu electric power plant by Beijing Datang Power Generation (0991) bore considerably high risk. Gansu, the poorest province in China, charges RMB0.26 per kw. Though Datang said that it would reduce construction and operation cost to control the power-generating cost, the fund house still believed that the too low charge would increase the risk in the project.

Related stock : (991)