Credit Suisse Wednesday maintains its positive outlook on China's environmental protection in its latest report, forecasting that the industry is likely to show strong demand growth and receive policy support during the 13th Five Year Plan period (2016-2020).
The report says China's investment in environment protection is expected to reach 10 trillion yuan from 2016 to 2020, which means an annualized investment of 2.4 trillion yuan. Credit Suisse analysts are bullish on stocks related to water utilities and renewable energy.
During the 13th Five Year Plan years, renewable energy industry will receive full support from the government, and wind energy suppliers and urban gas suppliers would benefit, says the report.
The investment bank predicts stocks of Huaneng Renewables Co., Ltd. (00958.HK), Xinjiang Goldwind Science and Technology Co., Ltd. (02208.HK) Dynagreen Environmental Protection Group Co., Ltd. ((01330.HK), China Gas Holdings Ltd. (00384.HK) and Wasion Group Holdings Ltd. (03393.HK) would outperform the market.