This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

China's Big Bang Theory: We've Gone Green

My metaphor means no immediate explosion in business for the multiple multinationals that have lined up to offer low-pollution technology to China's factories and buildings. (Vehicles are shaping up as a different story.)

Here's how things work: China is crowded and governments have traditionally served themselves, leaving the people without much support in an intensely competitive and still fundamentally poor country. So you take what you can, for yourself. The next guy is not your comrade in any real sense but your competitor.

So who cares if your farm, mine or factory causes some kind of environmental damage? The environment is public domain. You can't see the damage. You're not responsible for it legally in most ways, and it sure helps feed the family.

Fireworks are a tradition as staunch as popcorn and Super Bowls. Protests would make more noise than fireworks if the state squelched the haggard public's chance to let it rip for Lunar New Year, which is also a lengthy public holiday.

I've heard similar theories applied to the holdup in green industry and buildings. Local entrepreneurs tend to see no direct benefits in raising energy efficiency, which lures capital away from investment in green technology. Banks are some of the most fearful, followed by developers -- save for the top tier including China Vanke (000002:SZ) and Vantone International (VNTI).

People at large are hardly adding pressure. To quote one person I talked to a decade ago in the perennially polluted coal belt city of Taiyuan -- where you come back from every outing with black hands -- "We're just used to it."

Offshore investors will be keen to know that investment in green industry and buildings to date comes largely from foreign firms. The list of partners for the China Greentech Initiative, a business coalition seeking to be seen as energy efficiency leaders, includes General Electric (GE), BP (BP), Bayer (BAYRY), Dow Chemical (DOW) and Dow Corning. They're not the only names a New York investor will recognize.

The cumulative figures are worth a firework or 200: Two years ago China led the world in green investment with $211 billion, much of it from abroad, up about 30% from the previous year, according to a study by the United Nations Environment Program and the Frankfurt School of Finance and Management. (The United States surpassed China later.)

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $126.37 2.53%
FB $83.20 -0.13%
GOOG $552.03 0.67%
TSLA $190.57 3.01%
YHOO $44.95 -0.33%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs