The environmental protection sector has risen sharply!!! After entering February, the environmental protection engineering sector has grown by more than 10%, the energy-saving and environmental protection sector has also grown significantly, and the stock market is thriving. The environmental stock market reached a freezing point in 2018 due to a deteriorating financing environment, blocked export trade and lack of investor confidence. The environmental sector as a whole is down about 30 percent from the beginning of 2018, at one point falling to the bottom of valuations.

In October 2018, as the state began to support technology enterprises, various localities set up special funds to support private enterprises. The environmental stock market is gradually returning to stability, and investors seem to see opportunities.

After entering 2019, the environmental protection stock market in January experienced a rising trend at the beginning of the month and a downward trend at the end of the month. The sharp rise in February responded to investors' expectations before the year.

With this confidence, a number of companies are buying back their own shares.

Environmental Protection Stocks Rise Over A- Share Market

After entering 2019, investor confidence has returned, and A- shares as a whole are in a growing trend, especially after the Spring Festival.

In early February, the Shanghai stock index opened at 2557.78 points. As of today's morning trading, the Shanghai stock index has risen to 2771.28 points, up more than 100 points, and the stock price has recovered rapidly.

In fact, the environmental protection sector is rising faster than the broader market.

Since February, the energy-saving and environmental protection sector index rose from 6300 to nearly 7300 points, an increase of 13.70. The environmental protection engineering sector index also increased to 465.59 points, an increase of more than 15%.

In addition to the environmental protection sector, other related sectors in the environmental protection sector have also risen to varying degrees. Last week, gas, water and electricity rose 6.31 per cent, 4.40 per cent and 3.31 per cent, respectively.

Among them, environmental protection engineering enterprises Huagong Seg led the entire environmental protection sector. China Control Seg's share price rose well last week, up 16.71 per cent overall, followed by Oriental Garden and Dayu Water Saving.

The rise of environmental protection stock price is not only related to the overall trend of A shares, but also the support of national policies. Especially for some environmental protection engineering companies, in the most important year of sewage treatment, these companies are indeed promising.

A few days ago, various local policies were issued to signal the beginning of the final battle for sewage treatment.

The Office of the Leading Group for Water Pollution Prevention and Control of Hebei Province recently issued the "Three-year Action Plan for the Green Water Defense War in Hebei Province (2018-2020)", which proposes to focus on the improvement of water environment quality and focus on five major areas to further promote the prevention and control of water pollution.

Similarly, the Jiangxi Provincial Department of Ecology and Environment, the Provincial Department of Finance, the Provincial Development and Reform Commission, and the Provincial Department of Water Resources jointly issued the ''Implementation Plan for Jiangxi Province to Establish a Horizontal Ecological Protection and Compensation Mechanism for Upstream and Downstream Watersheds in the Province'', and began to comprehensively promote the province's river basins. Upstream and downstream horizontal ecological protection compensation work.

Local policies have given impetus to the environmental protection field, and also increased investor confidence, which makes the overall upward trend of the environmental protection sector higher than the average level of the-share market.

Listed Companies Accelerate Repurchase

Looking back on the stock market in 2018, one word is cold.

Indeed, last year's A- share internal and external troubles led to a lack of investor confidence, coupled with the impact of the deleveraging policy, which made the stocks of most companies in the Shanghai and Shenzhen stock markets have been in a steady decline. More importantly, even good news cannot stop this downward trend.

This has led to a mismatch between the share price and the company's performance, particularly in environmental protection stocks. Companies such as Xianhe Environmental Protection and Spotlight Technology achieved good results last year, but their stock prices are still mediocre.

At the end of last year, the domestic and international environment gradually turned for the better, the development of the stock market gradually stabilized, and investor confidence gradually returned, which also gave listed companies the hope of rising their own stock prices. A number of companies have begun to boost investor confidence through share buybacks, such as Jingdong's large-scale share buybacks at the end of last year.

The environmental sector is no exception, and a significant number of cash-rich companies have made share buybacks.

As of January 31, 2019, environmental protection, as a leader in the monitoring field, has repurchased 5.6585 million shares through centralized bidding, accounting for 1.03 of its current total share capital.

The same as the monitoring of the field of star enterprises, the stock repurchase progress is also rapid. As of February 11, 2019, Polytechnic Environmental Branch has repurchased 4.2113 million shares, accounting for 1.06 of the company's total share capital. The highest transaction price is 9.75 yuan/share, and the lowest transaction price is 9.06 yuan/share.

In addition to watershed management, the monitoring industry developed particularly rapidly last year, with stable revenue. For example, the net profit of Polytechnic Environmental Branch last year was as high as 0.237 billion -0.321 billion.

However, last year's smooth ride did not bring about a leap in share prices in the monitoring industry, so as the stock market gradually warmed up, monitoring companies were eager to get share prices back on track through share buybacks.

In the field of heavy assets, Xingrong environment, which involves sewage treatment, is even more generous. A few days ago, Xingrong Environment said that it would use its own funds to repurchase no less than 50 million shares (accounting for 1.67 per cent of the total share capital) and no more than 0.1 billion shares (accounting for 3.35 per cent of the total share capital) at a price of no more than 4.5 yuan per share. The amount of capital for this share repurchase shall not be less than 0.1725 billion yuan and no more than 0.45 billion yuan, and the first 1.92 million share repurchase shall be completed two days ago.

In the past year, Xingrong Environmental's stock price has been relatively weak. It has not been higher than the annual line for three consecutive days in a year. On February 20, Xingrong Environmental's stock price closed above the annual line for the first time for three consecutive days.

Affected by goodwill impairment, the stock market experienced a structural rebound in January. In February, the negative risk was greatly reduced, coupled with the support of domestic policies, which created a red scene across the line.

Not only has the deleveraging policy ushered in some positive changes, such as the domestic January social financing increase hit a record high, enterprises, local governments special debt issuance increase, and a large number of foreign funds into A- shares.

Since the start of 2019, the pace of foreign entry has accelerated significantly, with a cumulative net inflow of $60.688 billion in A- shares in January, the highest net inflow in a single month.

But this share price rise is the market for last year's oversold repair, the market is currently sitting in the inflection point of winter and spring.

Of course, relative to the stock market, the environmental protection sector is more looking forward to the arrival of the spring industry.

Article link: China Environmental Protection Online http://www.hbzhan.com/news/detail/128378.html