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Louis Wong: Top 2 Sectors to Benefit from China’s “13.5″
Aspire, Hot Picks, Thought Leaders | 04 November 2015
By: Chen Xushuang
Articles (26) Profile

Even as China’s recently announced two-child policy snatches the headlines, here is something no less important: China’s 13th Five-Year Plan (or 13.5 in short). Five-Year Plans (FYPs) are basically social and economic development blueprints, with targets that guide Chinese regulators throughout its five-year implementation period. China’s “13.5”, which is the first one approved by Xi Jinping, will be running from 2016-2020.

China’s “13.5” could serve as an important reference for investors who are looking into long-term investments, said renowned fund manager and financial analyst Louis Wong in the recently concluded Shares Investment Conference. Below are some of the sectors and sector-specific stocks that he has highlighted for the audience.

Environmental Conservation: Water, Air, and Soil Pollution Management

Source: szghb.com

As part of the “13.5”plan, the Chinese government would invest around 2 trillion Yuan annually for the next five years in environmental conservation. During that period, social-environmental investment is expected to reach more than 17 trillion Yuan.

Companies with Potential Gains

CT Environmental Group Limited (1353.HK)

As a provider of one-stop centralised and customised wastewater treatment and industrial water supply services in China, the company operates 11 water plants, six for industrial wastewater treatment, two for municipal wastewater treatment, and three for industrial water supply. On top of that, the company also operates five hazardous waste treatment facilities, covering 23 categories of hazardous waste.

China Everbright International Limited (257.HK)

The company provides environmental protection project management and consultancy services, covering fields such as energy, water, environmental construction and technology. It engages in waste-to-electricity projects, sewage treatment projects, renewable energy projects and industrial waste treatment projects, etc.

Dongjiang Environmental Company Limited (895.HK)

The company treats industrial and municipal waste and provides value-added support services such as waste collection and transportation, comprehensive resource treatment, dismantlement and disposal of electronic waste, and soil remediation, etc. The company also markets copper sulfate, copper oxychloride, copper oxide and copper to industrial customers throughout China and the Asia-Pacific region.

Beijing Enterprises Water Group Limited (371.HK)

The company specialises in water services and environmental protection businesses, with waste water treatment as its core business segment. It operates a total of 345 water treatment facilities, across China’s 19 provinces, two autonomous regions and three municipalities.

China Gas Holdings Limited (384.HK)

The company invests in, operates and manages natural gas distribution pipelines across China’s 25 provinces, autonomous regions, and municipalities. It owns 520 compressed/ liquefied natural gas vehicle fueling stations, one coal bed methane development project, and 98 liquefied petroleum gas distribution projects.

Broadband Telecommunications

Source: tech.qq.com

As a means to reduce reliance on old-time fiscal spending to save a slowing economy, China has unveiled the “Internet Plus Plan”. The plan aims to integrate Internet technologies with modern manufacturing, to encourage the healthy development of e-commerce, industrial networks, and Internet banking, while helping Internet companies increase international presence.

Louis sees a lot of room for future development in this field. In fact, the plan is that by 2017, more than 80 percent of administrative villages in China would have attained fibre broadband services, and the entire country (both urban and rural) would be covered by 4G network.

Companies with Potential Gains

ZTE Corporation (763.HK)

The company’s core products are wireless, exchange, access, optical transmission, and data telecommunications gear, as well as mobile phones and telecommunications software. It also offers value-added services such as video on demand and streaming media.

Yangtze Optical Fibre & Cable Joint Stock Limited Company (6869.HK)

The company researches, designs, develops, and manufactures fibre and cable products, which are marketed domestically and internationally. It is also China’s largest supplier for optical fibre, optical fibre preform, and optical cable.

As a Communications Studies graduate specialising in journalism, Xushuang is keen to observe and explore issues that readers want to know more about, and to deliver quality content through engaging writing.

Please click here for more information about this author.


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