BEIJING, September 14 – The government will provide support to innovation in and development of forest biomass energy of major enterprises and major provinces. Industry insiders said this policy will bring benefits to relevant listed companies.
Liu Tienan, vice-chairman of the National Development and Reform Commission and director of the National Energy Administration, said support will be provided to key enterprises when he was on an inspection trip to Henan province.
He said the government will speed up the formulation of a special plan on the pilot projects of advanced biomass energy and biochemical industry, and will issue more accommodative policies for bioenergy development.
Guo Shiliang, investment consultant with Yongzhu Investment Co, said the policy will have a limited impact on the listed companies in the sector, because forest biomass energy is still in the primary stage of development. But investment opportunities will be abundant in the sector. Zhao Huan, chief analyst with JRJ.com, said he believes the policies will lead to a rally of share prices of some leading enterprises in the sector. With support policies, investors are upbeat about stocks of these enterprises, and retail investors should try to seize the opportunity. The listed companies related to the sector include Wanxiang Doneed Co. Ltd, Gansu Ronghua Industry Group Co. Ltd, COFCO Biochemical (Anhui) Co. Ltd, Heilongjiang Agriculture Co Ltd and Wuhan Kaidi Electric Power Co. Ltd.