Environmental protection industry policy frequently pays attention to the 13th Five-Year Plan

Frequent environmental protection policies: The relevant policies in the environmental protection field are frequently introduced this week. 1) The Politburo examined and approved the “Overall Plan for the Reform of the Ecological Civilization System”, in which the relevant contents of the environmental protection industry include accelerating the price reform in the environmental protection field and advancing the environmental protection industry. Marketization, environmental assessment and increase the weight of accountability and other content; 2) Ministry of Finance, Ministry of Environmental Protection issued the "Water Pollution Prevention Special Fund Management Measures", the policy is the budget law and "Water Pollution Prevention Action Plan" supporting policies. The main contents include special funds and special management; the special funds are managed by the Ministry of Finance in conjunction with the Ministry of Environmental Protection; they clearly define the areas of support and merit support, and give support to the PPP model.

Enforcement of environmental protection law enforcement: The Ministry of Environmental Protection announced the implementation of the "Environmental Protection Law" and supporting measures in the country from January to July and the discharge of major pollutants in the first half of the year. According to the January-July schedule, a total of 348 cases of daily fines were imposed across the country with a total fine of 2.8203042 million yuan; a total of 2065 cases of seizure and seizure were implemented; a total of 1347 cases of restricted production or production suspension were imposed; A total of 927 cases were transferred and 863 suspected cases of environmental pollution were transferred. From the data, it can be seen that environmental protection is increasingly regarded as an important part of economic growth, and is defined as an important starting point and driving force for economic structural adjustment. It has become an important factor in the evaluation of local political performance, and law enforcement efforts have been steadily tightening.

Looking forward to the 13th Five-Year Actively Deploying Environmental Protection: Under the new normal, the traditional manufacturing industry will intensify its investment in environmental protection governance in the context of increasing environmental protection enforcement. For the environmental protection industry, in the long run, it is an era of spelling technology, management, and capability. The short-term and mid-term catalysts are the 13th Five-Year Plan that will be introduced in the second half of the year. It is expected that regardless of the atmosphere or solid waste and water, the standards and completion goals will be further improved, thereby releasing a larger environmental protection market. We still strongly favor the development of the environmental protection industry in the next 3-5 years. The specific stock selection strategy can be found in our first two weekly reports.

As of the 9/21 week environmental protection stock performance: We have screened 51 Hong Kong stocks environmental protection targets to monitor the performance of the environmental protection industry. As of the 9/21 week, 51 shares rose 4.2%. Please refer to the last two pages of this report for “Performance and Valuation of Anxin International Environmental Protection Portfolio Shares” for specific stock performance. The following table lists the best and worst environmental protection stocks in the week and month.