Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Forget About 5G, China Says. We’re Already Developing 6G
Alibaba Sued by Home Appliance Maker Over E-Commerce Marketing
WeChat Pay Eyes Foreign Visitors in Race with Alipay
LATEST
Tencent Profits Drop 13% in 3rd Quarter
Bytedance’s News App Disciplined for ‘Slandering’ Communist Hero
Didi Apologizes After Driver Allegedly Stabs Angry Passenger
Huya Posts Solid Third-Quarter Growth as User Base Expands
Kingsoft Office Targets $660 Million as It Moves Toward Listing on New Shanghai Tech Board
Expanding Central Bank Campaign Imposes More Fines for Money Laundering
Investors Applaud SMIC and YY, Shun Huami After Latest Earnings Reports
China Sets PM2.5 Goals for Yangtze River Delta and Fenwei Plain Regions
Is Didi Next in Line for Valuation Correction?
Challenging Tesla, Chinese Property Giant Vows to Unveil First Electric Car Next Year
Two Persons Diagnosed With Pneumonic Plague in Beijing
Huawei Hands Out Billions in Bonuses for Staff Response to Sanctions
Tencent Marks Anniversary by Touting Its Tech as Good for Society
Xiaomi Maintains Lead in India Handset Market, but Chinese Rivals Pose Growing Threat
China to Launch Mobile Number Portability Program on Dec. 1
China’s Pork Prices Rose 101% Year-on-Year in October
In Depth: Is the Sharing Economy Bubble Bursting?
After Double 11 Smashes Shopping Records, What Next for China’s E-Commerce Giants?
China ‘Confident’ That Brazil Will Let Huawei Build Its 5G Mobile Network
Gree to Invest $290 Million in Another Chipmaker
New Waste Treatment Plan Pushes Up Garbage Stocks in China

By Bloomberg / Jun 21, 2019 03:17 AM / Finance

Photo: Bloomberg

Photo: Bloomberg

Trash is cash — at least for investors in China’s environment sector.

Garbage treatment and recycling-related stocks are rallying, revived by new guidelines requiring more stringent sorting and waste treatment in large cities.

Kitchen waste treatment company WELLE Environmental Co. is on track for a record two-day gain, rising 18%. Refuse vehicle maker Fujian Longma Environmental Sanitation Equipment Co. is heading for a 32% advance over the past five days, while recycling enterprise Tus-Sound Environmental Resources Co. is up 16% this week.

Analysts say the sudden gains are more than just speculative as the fate of the environmental protection industry depends on policies.

The most prominent theme in the guidelines issued last week is a drive to better separate wet from dry waste, spurring demand for equipment with better seepage prevention, said Liang Chen, analyst at China Development Bank Securities Co. in Beijing.

This would benefit garbage treatment equipment companies while helping incineration businesses as segregating wet garbage will increase burning efficiency, she said. In addition, recycling businesses will save costs in the sorting process, she said.

"The industry is still awaiting clearer guidelines on a local level," Liang said. "But investors are clearly getting excited after share prices have been in the doldrums for so long."

Related: China’s Efforts to Promote Garbage-Sorting Have Gone to Waste

Share this article
Open WeChat and scan the QR code