China to launch $8.13b fund to fight pollution

A tourist stands near the National Stadium, also known as the Bird's Nest, on a hazy day in Beijing November 20, 2014. [Photo/Agencies]

SHANGHAI - China plans to launch a 50 billion yuan ($8.13 billion) environmental protection fund in stepped-up efforts to reduce widespread pollution, China Securities Journal reported on Wednesday.

The fund would receive investment from the National Development and Reform Commission (NDRC) and the Ministry of Finance, the paper said, and would attempt to beef up investment in critical sectors through low or no-interest loans.

Beijing has struggled to incentivize local governments and Chinese companies to step up their pollution-fighting efforts. The rapid industrialization of the world's second-biggest economy has been accompanied by?severe pollution of its air and water supplies.

The drive to reduce pollution has boosted share values for companies expected to benefit from increased government spending in recent months, in particular water treatment companies.

Official guidance for the fund expected to be published in December, the Journal report said.