Hong Kong investors are set to invest more in environmental businesses, either through shares in listed companies or in trendy 'green' pension funds.
Suddenly, many Hong Kong-listed companies are going green by investing heavily in environmental projects in the city and the mainland, aiming to cash in on the governments' focus and incentives to curb worsening pollution.
The launching of the city's first green pension fund, which invests in companies with good financial performance and strong environment interest, spiced up the green frenzy.
While listed developers plan to add renewable energy projects to their portfolios, other companies are leveraging their expertise in manufacturing to make higher-margin, environmentally friendly products, such as glass for solar energy systems.
Analysts observed that announcements of these projects had boosted companies' share prices temporarily, but they were advising investors to be alert to whether the profitability and prospects of these projects were as rosy as painted by the companies.
While the views of stockbrokers and individual investors vary, green groups seem unimpressed by the companies' moves and warn that the projects could create other types of pollution. They said some companies seemed to have hijacked the term 'environmental projects' to grab public attention while their underlying businesses were actually 'nothing special'.
Global Green Tech Group, a manufacturer of detergent, fabric softeners and skincare products, claims it has invented a technology that converts plastics into various forms of fuel.
