If you’ve seen my posts the past couple of days, you’ll see that the fact that I’m breathing in so much smog in Hong Kong has reminded me of the huge challenges China faces in cleaning up the mess that their 30 year economic party has created.
One of the books I’m reading right now is “A Bull in China” - a book about investing in China, written by Jim Rodgers, who notes in his book that this makes for some good investment opportunities.
He notes for instance, that the effects of pollution are costing the country up to 10% of GDP per year. That’s no chump change - it’s $200 billion per year. He also notes that China will soon be facing a major water crisis soon. It is already has the 13th lowest water per capita, and its resources will fall by 20% by 2030.
For these reasons, he expects major expenditures in China over the coming years to resolve some of these issues, and gives a few suggestions of companies to look into. These include:
- Bi0-Treat Technology Ltd. - Singapore company which builds wastewater treatment plants.
- Fujian Longking Co. Ltd. - Shanghai traded company which builds desulphurization and dust cleaning machinery.
I haven’t listed all the companies, so if you’ve been thinking of investing in Asia, and want to help (or at least profit from) clean up China, then I would check the book out, but take a look before you buy. In addition to a pretty short and detail light list of ‘green’ companies in a chapter about ‘Risk - The Perils of Succes’ (chapter 2) , there is some great info in the beginning about how one buys Chinese stocks. That information, about the types of shares available, and which exchanges have them is worth the price of the book all by itself.
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