The investment is set to benefit hydropower plant and grid equipment makers, but some analysts warn that market enthusiasm may wane soon.

China stocks climbed to an eight-month high on Tuesday, while Hong Kong shares extended gains to a multi-year peak, driven by construction and power firms after work began on a major dam project in Tibet,

China has started construction of the world’s biggest hydroelectric dam, a project that’s set to be far larger than the Three Gorges Dam — already the world’s biggest single source of green power — and more expensive than the International Space Station.