China's answer to 'An Inconvenient Truth' sparks rush for shares in green-tech companies
Environmental firms rise in value as programme focuses national attention on poor air quality
Two Beijing-based entrepreneurs became billionaires on Tuesday as shares in their companies rose to record highs on the prospect of new pollution laws after the documentary Under The Dome sparked interest in environmentalism.
Zhang Kaiyuan, chairman of Beijing SPC Environment Protection Technology, has a net worth of US$1.1 billion, while Ao Xiaoqiang, chairman of Beijing SDL Technology, has a US$1.2 billion fortune, according to the Bloomberg Billionaires Index. Both companies are based in Beijing.
The annual meeting of the National People's Congress, which begins today in the capital, is expected to set government policies for the year on big issues including pollution.
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The documentary, which has been likened to former US vice-president Al Gore's 2006 film An Inconvenient Truth, investigates the fallout of the country's poor air quality and logged 155 million viewers when it was shown online last weekend.
"Every year, environmental protection is a heated topic at the NPC," said Lai Shensheng, a Shanghai-based environment analyst at Capital Securities. "The inflow of capital is especially strong this year because of the huge reaction brought by the documentary."
SPC Environment Protection, which builds so-called flue-gas desulphuration equipment to contain sulphur dioxide emissions at thermal power plants, slumped 3 per cent to 36.24 yuan (HK$45.55) on the Shenzhen Stock Exchange yesterday, down from a new high on Tuesday.
SDL Technology, which makes equipment that tracks pollution levels, advanced by the 10 per cent daily limit for two days before declining 1.7 per cent to 39.99 yuan in Shenzhen.