CRI听力:China Revs up Fund to Protect Environment

The Chinese government has launched a new campaign and a promise not to pursue economic growth at the cost of the environment.

CRI's Chi Huiguang has more.

Reporter: China will invest more than five trillion yuan, or about 815 billion US dollars, in environmental protection in the period between 2011 and 2015.

The remarks were made by Wu Xiaoqing, vice-minister of the Ministry of Environmental Protection, at a recent press conference during the annual session of the country's top legislature, the National People's Congress.

A total of nearly 1.7 trillion yuan, equivalent to about 277 billion US dollars will be allocated for air pollution control.

Analysts say businesses higher up the industrial chain for air pollution control industry will stand to benefit from the new policies since investment is expected to concentrate on containing the source of air pollution.

Among other beneficiaries are businesses involved in water pollution control.

Wu Xiaoqing, vice-minister of the Ministry of Environmental Protection:

"It will add another huge amount of investment after the introduction of the 'Water Pollution Control Action Plan' this year. We estimate investment in energy conservation and environmental protection, especially that in protecting the environment, will further rise starting from 2014."

The slated plan will pump nearly two trillion yuan, about 326 million US dollars into water pollution control schemes, as estimated by the Ministry of Environmental Protection.

The new policies have propelled many firms to anticipate tapping into the booming market of water pollution control.

Beijing Origin Water Technology Company is a public company that focuses on water treatment. He Yuanping, the vice president of the company, announced that the company recently won biddings for two water recycling plants in Beijing, involving nearly 876 million yuan, about 143 million US Dollars.

"We are eyeing good development and huge market potential for the country's environmental protection industry in the next few years."

Capital markets are also keen to gain from the potential profits new policies may generate. The domestic stock market has seen water treatment-related shares climbing by more than 6 percent, with major stocks jumping up to above 20 percent since the beginning of the year.

Yu Wali is an analyst with China Minzu Securities.

"We are very optimistic about the water pollution treatment sector in 2014. The new policies were formed in the first two years of the 12th Five Year Plan between the years 2011 to 2015, and will be put into practice between 2014 and 2015."

For CRI, I'm Chi Huiguang.