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“When some places are surrounded by the smog， we have blue sky and white clouds here. When some places are submerged by flood， we have clean lake and gentle wave here. This is indeed a rare place of wonder”.
This is an advertise the government of Fengxian District， Shanghai makes for itself， telling investors that Fengxian boasts good environment for the good of investors and entrepreneurs.
This declaration seems very attractive when Beijing and several other provinces are filled with the smog again at the beginning of November， 2013. China Association of Social Sciences and China Meteorological Administration together published the Green-cover Book about Climatic Changes： the 2013 Report about Handling Climatic Changes， showing that the large part of Central and East China had been covered by the fog and smog for 25-100 days by November 4， 2013. And the smog happened more frequently than the fog.
The air quality and environmental protection have already become the selling points of many local authorities when it comes to the recruitment of the investment. What has been activated also includes the orders of governmental purchasing. Hebei Sail Hero Environmental Protection Technologies Co.， Ltd （hereafter Sail Hero） was one of them. It just reached an agreement of purchasing with the Hebei Provincial Environment Survey Center with the total net value of RMB 60.912 million.
Invite Entrepreneurs to Have Deep Breath
The aforementioned ad of Fengxian government was shown in the urban development introduction conference held in middle October. The ad was supported by a group of data – the potential investors were also attracted by these data– that Fengxian has several forest areas that cover thousands of acres and the value of PM2.5 in this district is the lowest among all districts in Shanghai.
PM is short for Particulate Matter， while 2.5 refers to the particulate matter’s size which is lower than 2.5 microns. PM2.5， which was introduced into China by the U.S. ambassador， has become an important concept about the air and environmental quality in China.
From the winter of 2012， the northern land of China frequently met the smoggy weather， which helped the spread of the concept of PM2.5. The emission of the waste gas of vehicles and boilers， as well as the raised dust， is the main source of the PM2.5.
The data from China Meteorological Administration shows that there were 4.7 smoggy days in China averagely in 2013， the largest since the year of 1961. 13 provinces had seen the largest number of smoggy days in the history. On September 22， Ma Jun， chief economist of Deutsche Bank Greater China， said in a forum in Shanghai University of Finance and Economics， “I was asked why I am so young. Actually I am not young because I am about to be 50 years old. Others say that I look young because I stay in a good place.”
According to him， he stayed in the U.S. for 10 years. There the PM2.5 is 5-10 micrograms per cubic meter. And then he spent 13 years in Hong Kong， where the PM2.5 is not high either. “I stayed in Beijing this year and I can feel the impact of environment on man’s feelings and emotions，” Ma Jun says. He also said he got three air purifiers to handle the smog in Beijing. One is always carried by himself while the other two are each placed in the office and at home.
On February 29， 2012， the Ministry of Environmental Protection and the General Administration of Quality Supervision modified the Environmental Air Quality Standard， in which the PM2.5 was for the first recruited into the regular items to evaluate the air quality. The maximal value of PM2.5 is set to be 75 micrograms per cubic meter in 24 hours or 35 micrograms per cubic in a year.
But on the first day of November 2013， the value of PM2.5 in the six districts of Beijing reached 307 micrograms per cubic meter.
So Shanghai says that “we are better than Beijing because we have smaller PM2.5 value”. Several other provinces and cities also did the same thing. A senior governmental official of Suqian， Jiangsu， said in a forum that entrepreneurs should come to Suqian more often to “take deep breaths”.
“28% of Suqian’s land is covered by trees while the forest acreage in the downtown area takes more than 40% of the total land，” this governmental official said. “I found that some governmental officials that lived in other places of Jiangsu and suffered respiratory disease had their disease cured or abated after living in Suqian for a while.”
Baoji， Shaanxi also uses the good environment as a weapon to draw the investment. The local newspaper published an article on October 12 that a Hong Kong entrepreneur thought the ecological environment of Baoji to be rare in China. In addition， the city has introduced projects with great potentials. These two factors have made the company invest in Baoji.
In the period where everyone is exploring to handle the environmental issues， the blue sky， white clouds and good air have already become closely related with the city images and the core competitiveness of the city’s soft power. Listed Companies’ Push of Environmental Performance
From the year of 2012， the Chinese government successively issued a series of policies to tackle the air pollution， bringing about the heat of governmental purchasing of PM2.5 monitoring devices.
According to the schedule for the Chinese cities to monitor the PM2.5 set by the Ministry of Environmental Protection， key regions， municipalities and capital cities in the Bohai River Rim， Yangtze River Delta and Pearl River Delta took the lead in monitoring PM2.5. In 2013， the same job was initiated in 113 key cities and exemplary cities of environmental protection. Then， in 2014， all cities must adapt to the new rules， which are going to be effective in the whole country in January 1， 2016.
At the end of September 2013， the Ministry of Environmental Protection reported the periodic results of initiating the monitoring of PM2.5， according to which there had been 172 national-level air monitoring stations built， upgraded and put into work in 40 cities of China.
Sail Hero’s marketing director Du Xinping says that almost every county of Hebei needs at least one PM2.5 moni-toring device because of the severe air pollution here.
The contract between Sail Hero and Hebei government is to build an air quality monitoring network that covers every county in Hebei. According to Du Xinping， this is the first phase of project and more progress will be seen in the year of 2014.
Wu Xiaoqing， Vice Minister of Environmental Protection， once said that the Chinese government planned to build 1，500 PM2.5 monitoring stations in China during the 12th Five-Year Plan （2011-2015）. The total investment is going to exceed RMB 2 billion.
As Du Xinping points out， the market of PM2.5 monitoring devices is not going to expand fast in 2014 like it did three years ago. But the growth is going to be continued. According to the quarterly financial result of Sail Hero， the sector of air quality monitoring device developed stably and quickly thanks to the implementation of national environmental protection rules and the revenue increased dramatically compared with the previous year. Its Q3 report shows that the total operating revenue amounted to RMB 164 million and the net profits was RMB 36.37 million， respectively up 33.1% and 15.93%.
Presently， there were several famous multinational companies producing PM2.5 monitoring devices， including the U.S.-based Thermo Fisher and companies from Australia and France. The other companies are based in France and Australia. In addition， local companies based in Wuhan， Shanghai， Anhui and Beijing are indispensable forces in this market.
Zhou Xiaobin， senior business director of the Emerging Market Environment and Process Supervision of Thermo Fisher Asian-Pacific Region， says that company has got a stably increasing business in China because of the efforts of governments of all levels in China put into the environmental protection. Nowadays， the company is trying to improve the level of localization in China as more and more devices are now made in China.
Meanwhile， the domestic-made PM2.5 monitoring devices are given more market advantages thanks to the favorable policies of the government and the price support. Du Xinping says that the domestic-made devices took next to naught in the market of PM2.5 monitoring device in 2011. In 2012， the proportion increased to 15% and is expected to increase to over 50% in 2013.
According to Du Xinping， the imported PM2.5 monitoring device is priced at RMB 250 thousand per set while the domestic device is only half of its price. In addition， the domestic devices have passed the test and proven to be reliable.
Therefore， the smog is good news for some places and companies.
This is an advertise the government of Fengxian District， Shanghai makes for itself， telling investors that Fengxian boasts good environment for the good of investors and entrepreneurs.
This declaration seems very attractive when Beijing and several other provinces are filled with the smog again at the beginning of November， 2013. China Association of Social Sciences and China Meteorological Administration together published the Green-cover Book about Climatic Changes： the 2013 Report about Handling Climatic Changes， showing that the large part of Central and East China had been covered by the fog and smog for 25-100 days by November 4， 2013. And the smog happened more frequently than the fog.
The air quality and environmental protection have already become the selling points of many local authorities when it comes to the recruitment of the investment. What has been activated also includes the orders of governmental purchasing. Hebei Sail Hero Environmental Protection Technologies Co.， Ltd （hereafter Sail Hero） was one of them. It just reached an agreement of purchasing with the Hebei Provincial Environment Survey Center with the total net value of RMB 60.912 million.
Invite Entrepreneurs to Have Deep Breath
The aforementioned ad of Fengxian government was shown in the urban development introduction conference held in middle October. The ad was supported by a group of data – the potential investors were also attracted by these data– that Fengxian has several forest areas that cover thousands of acres and the value of PM2.5 in this district is the lowest among all districts in Shanghai.
PM is short for Particulate Matter， while 2.5 refers to the particulate matter’s size which is lower than 2.5 microns. PM2.5， which was introduced into China by the U.S. ambassador， has become an important concept about the air and environmental quality in China.
From the winter of 2012， the northern land of China frequently met the smoggy weather， which helped the spread of the concept of PM2.5. The emission of the waste gas of vehicles and boilers， as well as the raised dust， is the main source of the PM2.5.
The data from China Meteorological Administration shows that there were 4.7 smoggy days in China averagely in 2013， the largest since the year of 1961. 13 provinces had seen the largest number of smoggy days in the history. On September 22， Ma Jun， chief economist of Deutsche Bank Greater China， said in a forum in Shanghai University of Finance and Economics， “I was asked why I am so young. Actually I am not young because I am about to be 50 years old. Others say that I look young because I stay in a good place.”
According to him， he stayed in the U.S. for 10 years. There the PM2.5 is 5-10 micrograms per cubic meter. And then he spent 13 years in Hong Kong， where the PM2.5 is not high either. “I stayed in Beijing this year and I can feel the impact of environment on man’s feelings and emotions，” Ma Jun says. He also said he got three air purifiers to handle the smog in Beijing. One is always carried by himself while the other two are each placed in the office and at home.
On February 29， 2012， the Ministry of Environmental Protection and the General Administration of Quality Supervision modified the Environmental Air Quality Standard， in which the PM2.5 was for the first recruited into the regular items to evaluate the air quality. The maximal value of PM2.5 is set to be 75 micrograms per cubic meter in 24 hours or 35 micrograms per cubic in a year.
But on the first day of November 2013， the value of PM2.5 in the six districts of Beijing reached 307 micrograms per cubic meter.
So Shanghai says that “we are better than Beijing because we have smaller PM2.5 value”. Several other provinces and cities also did the same thing. A senior governmental official of Suqian， Jiangsu， said in a forum that entrepreneurs should come to Suqian more often to “take deep breaths”.
“28% of Suqian’s land is covered by trees while the forest acreage in the downtown area takes more than 40% of the total land，” this governmental official said. “I found that some governmental officials that lived in other places of Jiangsu and suffered respiratory disease had their disease cured or abated after living in Suqian for a while.”
Baoji， Shaanxi also uses the good environment as a weapon to draw the investment. The local newspaper published an article on October 12 that a Hong Kong entrepreneur thought the ecological environment of Baoji to be rare in China. In addition， the city has introduced projects with great potentials. These two factors have made the company invest in Baoji.
In the period where everyone is exploring to handle the environmental issues， the blue sky， white clouds and good air have already become closely related with the city images and the core competitiveness of the city’s soft power. Listed Companies’ Push of Environmental Performance
From the year of 2012， the Chinese government successively issued a series of policies to tackle the air pollution， bringing about the heat of governmental purchasing of PM2.5 monitoring devices.
According to the schedule for the Chinese cities to monitor the PM2.5 set by the Ministry of Environmental Protection， key regions， municipalities and capital cities in the Bohai River Rim， Yangtze River Delta and Pearl River Delta took the lead in monitoring PM2.5. In 2013， the same job was initiated in 113 key cities and exemplary cities of environmental protection. Then， in 2014， all cities must adapt to the new rules， which are going to be effective in the whole country in January 1， 2016.
At the end of September 2013， the Ministry of Environmental Protection reported the periodic results of initiating the monitoring of PM2.5， according to which there had been 172 national-level air monitoring stations built， upgraded and put into work in 40 cities of China.
Sail Hero’s marketing director Du Xinping says that almost every county of Hebei needs at least one PM2.5 moni-toring device because of the severe air pollution here.
The contract between Sail Hero and Hebei government is to build an air quality monitoring network that covers every county in Hebei. According to Du Xinping， this is the first phase of project and more progress will be seen in the year of 2014.
Wu Xiaoqing， Vice Minister of Environmental Protection， once said that the Chinese government planned to build 1，500 PM2.5 monitoring stations in China during the 12th Five-Year Plan （2011-2015）. The total investment is going to exceed RMB 2 billion.
As Du Xinping points out， the market of PM2.5 monitoring devices is not going to expand fast in 2014 like it did three years ago. But the growth is going to be continued. According to the quarterly financial result of Sail Hero， the sector of air quality monitoring device developed stably and quickly thanks to the implementation of national environmental protection rules and the revenue increased dramatically compared with the previous year. Its Q3 report shows that the total operating revenue amounted to RMB 164 million and the net profits was RMB 36.37 million， respectively up 33.1% and 15.93%.
Presently， there were several famous multinational companies producing PM2.5 monitoring devices， including the U.S.-based Thermo Fisher and companies from Australia and France. The other companies are based in France and Australia. In addition， local companies based in Wuhan， Shanghai， Anhui and Beijing are indispensable forces in this market.
Zhou Xiaobin， senior business director of the Emerging Market Environment and Process Supervision of Thermo Fisher Asian-Pacific Region， says that company has got a stably increasing business in China because of the efforts of governments of all levels in China put into the environmental protection. Nowadays， the company is trying to improve the level of localization in China as more and more devices are now made in China.
Meanwhile， the domestic-made PM2.5 monitoring devices are given more market advantages thanks to the favorable policies of the government and the price support. Du Xinping says that the domestic-made devices took next to naught in the market of PM2.5 monitoring device in 2011. In 2012， the proportion increased to 15% and is expected to increase to over 50% in 2013.
According to Du Xinping， the imported PM2.5 monitoring device is priced at RMB 250 thousand per set while the domestic device is only half of its price. In addition， the domestic devices have passed the test and proven to be reliable.
Therefore， the smog is good news for some places and companies.