ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Stocks

China's PPP scheme drives up shares of environment-related companies

Shanghai Stock Exchange

HONG KONG -- Shares of environment-related companies have soared in anticipation of the Chinese government's "public-private partnership" scheme boosting private investment in infrastructure projects.

Since mid-September, speculation has been circulating. The online edition of Chinese newspaper Securities Times reported, "The PPP's new investment project looks to be announced shortly."

Buy orders flooded in for shares of water treatment-related companies. For example, shares of Heilongjiang Interchina Water Treatment surged 8% from the day before on Sept. 6 on the Shanghai Stock Exchange.

The PPP scheme grabbed the global spotlight during the Sept. 4-5 Group of 20 summit in Hangzhou, Zhejiang Province. Although the initiative to attract private investment in government-led infrastructure projects was floated in 2013, the term "PPP" became popular later, in about 2015.

Among the topics on the meeting's agenda was easing of regulations related to the procurement of funds for environment conservation projects, underlining Beijing's high interest in the environmental issues. The PPP scheme is considered a vehicle to ramp up investment in infrastructure related to environment protection. Amid shrinking private investment in China, investors are assuming that the authorities aim to draw in such investment in infrastructure projects through PPP as a last resort.

However, the PPP scheme has been criticized in Chinese stock markets for its lack of a detailed plan. The purchase of shares is, at present, based only on expectations for projected increases in private investment.

As for the PPP's effect on pushing up private investment, an official of a Chinese brokerage house said, "PPP will only serve to increase the government investment if it is a partnership in which the proportion of private investment is small."

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more