Chinese Environment Protection Stocks Rally on Green Shift Goals

By Bloomberg

Aug 12, 2024

image is BloomburgMedia_SI31HBT0G1KW00_12-08-2024_09-00-12_638590176000000000.jpg

Pedestrians walk through the Lujiazui Financial Center close to a stock ticker tape in Shanghai, China, on Wednesday, August 7, 2024. An electronic ticker displays stock figures in Shanghai, China, on Wednesday, Aug. 7, 2024. The People's Bank of China is potentially getting the respite it’s been hoping for from global financial markets, bringing closer a dose of monetary stimulus long awaited by investors and traders. Photographer: Qilai Shen/Bloomberg

(Bloomberg) -- Chinese environment protection shares rallied on Monday as the nation pledged to accelerate plans to curb carbon emissions.

Yonker Environmental Protection Co. and Shenwu Energy Saving Co. surged by their daily limits of 20% and 10%, respectively. Solar stocks, including Longi Green Energy Technology Co. and JA Solar Technology Co. also gained, rising up to 3% each.

China plans to make significant progress in reducing pollution and carbon emissions by 2035, with goals such as significantly increasing the proportion of electric vehicles in new auto sales by that year, state-run Xinhua news agency reported.

“The government will need to create some domestic demand for this area, given that these industries are facing oversupply and trade restrictions globally,” Bloomberg Intelligence analyst Marvin Chen said with regard to the solar and electric vehicle sectors.

China also aims to boost the proportion of non-fossil energy consumption to 25% by 2030, and expects energy conservation and environmental protection industries to reach about 15 trillion yuan in scale by then, according to the Xinhua report.

By Bloomberg News