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

SHANGHAI (Reuters) -China stocks closed at 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,

The project on a river that runs through Tibet and India downstream could dwarf the Three Gorges Dam when completed.