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BIZCHINA / News |
Listed firms invest 15.6b yuan in new energyBy Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-12-13 08:43 A total of 25 Chinese listed companies have invested 15.6 billion yuan ($2.11 billion) so far this year in new energies, including the wind energy, solar energy and coal chemical industries, the China Securities Journal reported today. Guizhou Chitianhua Co Ltd invested a combined 5.58 billion yuan in new energies, the highest of the 25 listed firms. Shanghai Aero Auto Electromechanical and Baoding Tianwei Baobian Electric Co have poured 1.9 billion yuan and 1.48 billion yuan respectively into the new energy sector. The three publicly-traded companies' investment into new energies accounted for 57.25 percent of the 25 listed firms' total, statistics show. The 25 firms include eight electricity-related enterprises, six electric equipment companies, and four chemical firms. As price of crude soars, the new energy sector is gaining momentum. The World Energy Council says the global new energy market will reach $2 trillion by 2020, and wind power, solar energy, ethanol, and biofuel will become mainstream investment targets. Additionally, new energy is one of the main focuses of China's 11th Five-Year Program (2006-10). The industry is likely to see rapid development, enjoying supportive policies. In terms of energies, a combined 2.57 billion yuan was invested into wind power, accounting for 16.41 percent of the total; 7.49 billion yuan into the coal chemical industry, representing 47.89 percent; 4.66 billion yuan into solar energy; and 746 million yuan into battery firms. Goldwind Science and Technology Co Ltd, China's leading wind energy equipment maker, is planning to list on the Shenzhen Stock Exchange. The firm's estimated sales revenue for 2007 is 3.24 billion yuan, with a considerable net profit of 601 million yuan. New energy stocks are also performing better on China's stock market. The Shanghai Composite Index has declined 2.49 percent since November 21, but the 25 listed firms added 16.68 billion yuan in capitalization, or 6.49 percent, in the same time period. Earlier this month, a draft of the energy law was officially published for public comment. The new law is expected to put China's energy management onto a legal track and help China better safeguard its energy security. The draft energy law has 15 chapters and 140 articles that define energy management, strategy, development, supply, storage, and conservation. The law will also cover energy technology, international cooperation, fiscal and tax policies, and other issues. |
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