Markets

Environment stocks gain on China's carbon target

(Xinhua)
Updated: 2009-11-27 13:54

Environment-related stocks rose in morning trade Friday on China's firm target to curb greenhouse gas emissions, despite an overall drop at the two main stock exchanges.

The sector rose 0.93 percent on average as of 11:30 am, while the benchmark Shanghai Composite Index lost 1.05 percent to 3,137.65 points and the Shenzhen Component Index slid 1.25 percent to 13,121.24 points.

Fujian Longking Co, a manufacturer of electro filter equipment and flue gas desulfurization equipment, gained 7.18 percent to 31.65 yuan ($4.65). FeiDa Group Co, producer of air and water cleaning equipment in Zhejiang province, rose by the daily limit of 10 percent to 16.12 yuan.

The State Council, or the Chinese Cabinet, announced Thursday that China was going to reduce the intensity of carbon dioxide emissions per unit of GDP in 2020 by 40 to 45 percent compared with the level of 2005.

Qin Xiaobin, analyst with the China Galaxy Securities, told Xinhua that the target unveiled yesterday showed the government would intensify efforts on combating climate change and improving energy efficiency.

The pledge promised a long-term and fast growth for the companies in the sector, he said.