China CleanTech Index 3Q13 Quarterly Performance Report

Sydney, Oct 15, 2013 AEST (ABN Newswire) - The China CleanTech Index provides the definitive measure of the performance of Chinese cleantech companies that are listed on stock exchanges around the world.

The cleantech industry is split into a number of sub-sectors as detailed in the table below. Each of the sub-sectors contains companies that have both environmental and economic benefits.

Biogas
Geothermal - Hot dry rocks and conventional
Biofuels
Low Emissions Transport Technologies
Carbon Trading
Solar Thermal and Photovoltaics
Energy Efficiency & Biomaterials
Waste Management & Recycling
Energy Storage & Fuel Cells
Water
Environmental Services
Wave, Tidal & Hydro
Green Buildings
Wind Generation

The cleantech sector is fundamentally different to Socially Responsible Investments (SRI) or Environmental, Social and Governance (ESG) performance. SRI and ESG look at incremental improvements in company performance and can be seen as 'operational hygiene' measures that find the best in class. Cleantech focuses on companies whose output positively enhances the communities and ecologies in which they reside. It is about doing 'more good' rather than 'less bad'.

With 150 companies falling under the coverage of the Index and with a combined market capitalisation of over 900 billion Renminbi (US$146 billion), the China CleanTech Index presents for the first time a picture of the Chinese cleantech industry's growth in a single measure.

The Index is weighted by market capitalisation and is benchmarked against the following indices to show its relative performance:

- Wilder Hill New Energy Global Innovation Index (NEX) - which measures the performance of global clean energy stocks
- Cleantech Index (CTIUS) - which measures the performance of global cleantech stocks
- China Shanghai Composite Index (SHCOMP) - which measures the performance of stocks listed in Shanghai.
- MSCI World (MSCI) - which provides a measure of the performance of global stock markets.

The rules for the formulation and management of the Index have been developed with reference to global best practice. An overview of these rules is provided in the annual performance report.

The China Cleantech Index is updated each month and published on the SinoCleantech website at www.sinocleantech.com and on the Australian CleanTech website at www.auscleantech.com.au. It is published internationally in conjunction with Cleantech Investor (www.cleantechinvestor.com) and in China in conjunction with Top Capital (www.topcapital.cn).

Monthly results can be emailed directly to interested parties by subscribing at www.sinocleantech.com.

China CleanTech Index Performance

The China CleanTech Index underperformed two of its four benchmarks for the month of September 2013 but still recorded a strong gain of 4.8%.

The China CleanTech Index rose from 39.8 to 41.7 over the month of September recording a 4.8% gain. This compared to the NEX gain of 10.6%, the CTIUS gain of 8.3%, the Shanghai Composite gain of 3.0% and the MSCI gain of 4.8%. The China CleanTech 20 fared slightly worse with a gain of only 3.3%.

Over the third quarter of 2013, the China CleanTech Index recorded a gain of 12.6%, again underperforming two of its benchmark indices. Over the quarter, the NEX gained 16.5%, the CTIUS gained 14.1%, the Shanghai Composite gained 9.5% and the MSCI gained 7.7%.

The twelve month gain for the China CleanTech Index now stands at 28.5% strongly outperforming both the Shanghai Composite and the MSCI World Index although still behind the NEX and the CTIUS.

--------------------------------------------------------Percentage Change     2009   2010   2011   2012  --------------------------------------------------------China CleanTech Index 77.5%  -9.6% -48.0% -16.5% China CleanTech 20    59.6% -15.6% -47.4% -15.5% NEX                   39.7% -14.6% -40.2%  -5.5%  CTIUS                 38.1%   7.3% -18.3%   7.3% Shanghai Composite    80.0% -14.3% -21.7%   3.2% MSCI                  27.0%   9.6%  -7.6%  13.2%  ----------------------------------------------------------------------------------------------------------------Percentage Change     Sep'13  3Q13   6 Mths 12 Mths 3 Yrs--------------------------------------------------------China CleanTech Index   4.8%  12.6%   7.4%  28.5%  -43.9%China CleanTech 20      3.3%   8.3%   0.9%  22.9%  -43.9%NEX                    10.6%  16.5%  32.4%  49.2%  -16.2%CTIUS                   8.3%  14.1%  13.6%  33.4%   21.4%Shanghai Composite      3.0%   9.2%  -3.4%   3.6%  -18.6%MSCI                    4.8%   7.7%   7.6%  17.7%   30.9%--------------------------------------------------------

The market capitalisation of the 150 stocks in the China CleanTech Index is RMB 913 billion (US$146 billion), before its rebalance surpassing its prior peak of RMB 911 billion in February 2011 and up from its trough of RMB 604 billion in November 2012.

Best and Worst Stocks

The best and worst performers in terms of share price performance over the month and the third quarter of 2013 are shown in the table below.

Over the month, 14 companies recorded share price gains of more than 40%, with nine of these being solar companies, and 7 companies recorded losses of more than 10%. Over the quarter, 20 companies recorded share price gains of more than 50%, with 11 of these being solar companies, and 6 companies recorded losses of more than 20%.

September 2013Best PerformersShare Price Gain > 40%---------------------------------------Bodisen Biotech, Inc.China SunergyDaqo New Energy Corp.Hanwha Solarone Co LtdJA Solar HoldingsJinkoSolar Holding Co., Ltd.Sungrow Power Supply CoSuntech Power HoldingsTrina SolarYingli Green EnergyChina BAK BatteryChina Sun Group High Tech Co.Coslight Technology International GroupChina Ming Yang Wind Power Group Ltd---------------------------------------Worst PerformersShare Price Loss > 10%---------------------------------------SmartHeat IncCNPV Solar Power SAZhejiang Sunflower Light Energy Science & Technology LimitedShenzhen Desay Battery Technology Co., Ltd.Heilongjiang Interchina Water Treatment Co LtdZhejiang Fuchunjiang Hydropower EquipChina Datang Corp Renewable Power Co Ltd---------------------------------------Third Quarter 2013Best PerformersShare Price Gain > 50%---------------------------------------Bodisen Biotech, Inc.Canadian Solar IncChina SunergyDaqo New Energy Corp.Hanwha Solarone Co LtdJinkoSolar Holding Co., Ltd.ReneSola Ltd. (ADR)Shunfeng Photovoltaic InternationalSungrow Power Supply CoSuntech Power HoldingsTrina SolarYingli Green EnergyBeijing Easpring Material Technology Co., Ltd.China BAK BatteryChina Sun Group High Tech Co.Coslight Technology International GroupEVEChina Recycling Energy Corp.Duoyuan Global WaterCleanTech Innovations Inc.---------------------------------------Worst PerformersShare Price Loss > 20%---------------------------------------SmartHeat IncChina Solar & Clean Energy Solns., Inc.CNPV Solar Power SAZhejiang Sunflower Light Energy Science & Technology LimitedC&G Environmental Protection Holdings LtdHeilongjiang Interchina Water Treatment Co Ltd---------------------------------------

Index Rebalance

The China CleanTech Index underwent its quarterly rebalancing at the end of September which took account of recent share issues and other corporate activity.

There were no changes to the index constituents this quarter.

Component Sub-Indices

To provide an analysis of the China CleanTech Index, eight sub-indices have been developed. The performance of each of these sub-indices over the last four years is and the current quarter are shown in the table and charts below.

All but one of the sub-indices recorded gains for the quarter. The only sub-index that had a negative result for the three months to September 2013 was the China Hydro Index that recorded a 1.4% loss. The best results were the 40.7% gain for the China Solar Index and the 24.8% gain for the China Storage Index.

The China Solar Index and its 35 constituent companies continue to make up ground after losing so much of its value over the last couple of years. The six month gain until the end of September for the China Solar Index is 67.7% and the 12 month gain is 98.0%.

China CleanTech Sub-Indices                           2009     2010    2011   2012    3Q13China Efficiency Index     102.4%   31.8%  -60.4%  -30.9%  12.1%China Environment Index    157.4%   13.5%  -31.1%  -21.8%  19.2%China Solar Index           92.4%  -13.0%  -57.5%  -36.2%  40.7%China Storage Index        141.0%  -15.1%  -36.6%   11.7%  24.8%China Waste Index           65.7%   99.1%  -25.9%  -12.5%   2.8%China Water Index          113.5%    9.6%  -49.7%   -8.0%   9.2%China Hydro Index           78.9%  -35.6%  -23.0%    1.1%  -1.4%China Wind Index            45.8%  -21.0%  -57.7%  -32.5%  10.2%

Index Component Companies

The 20 largest Index constituents by market capitalisation on 30 September 2013 are provided in the table below. These stocks will be the constituents of the China CleanTech 20 until the Index rebalance on 31 December 2013.

In the China CleanTech 20, the greatest sub-sector representations are Water with seven companies followed by Wind with four companies.

New entrants to this list at this rebalance are Chengdu Xingrong Investment, Fujian Longking, Beijing SPC Environment Protection and Beijing SJ Environmental Protection. These have taken the place of Beijing New Building Materials, China Datang Corp Renewable Power, JA Solar and Beijing Water Business Doctor.

1 China Yangtze Power Co., Ltd. WAVE, TIDAL, HYDRO Shanghai (SH) 600900.SS
2 China Longyuan Power Group Corp WIND HKSE 0916.HK
3 Beijing Originwater Technology Co., Ltd. WATER Shenzhen SX (SHE) 30070.SZ
4 Sinohydro Group Ltd WAVE, TIDAL, HYDRO Shanghai (SH) 601669.SS
5 GCL-Poly Energy Holdings SOLAR HKSE 3800.HK
6 Chongqing Water Group Company Limited WATER Shanghai (SH) 601158.SS
7 China Everbright International WATER HKSE 0257.HK
8 Sound Environmental Resources Co., Ltd. WASTE Shenzhen SX (SHE) 000826.SZ
9 Beijing Enterprises Water Group WATER HKSE 0371.HK
10 Xinjiang Goldwind Science & Technology Co. WIND Shenzhen SX (SHE) 002202.SZ
11 Huaneng Renewables Corp Ltd WIND HKSE 0958.HK
12 Sinovel Wind Group Company Limited WIND Shanghai (SH) 601558.SS
13 Tsinghua Tongfang Co., Ltd. ENERGY EFFICIENCY Shanghai (SH) 600100.SS
14 Beijing Capital Co., Ltd. WATER Shanghai (SH) 600008.SS
15 Chengdu Xingrong Investment Co.,Ltd WATER Shenzhen SX (SHE) 000598.SZ
16 Fujian Longking Co., Ltd ENVIRONMENTAL SERVICES Shanghai (SH) 600388.SS
17 Tianjin Capital Environmental Protection Group Co., Ltd. WATER Shanghai (SH) 600874.SS
18 Shanghai Aero Auto Electromechanical SOLAR Shanghai (SH) 600151.SS
19 Beijing SPC Environment Protection Tech Co., Ltd. ENVIRONMENTAL SERVICES Shenzhen SX (SHE) 002573.SZ
20 Beijing SJ Environmental Protection and New Material Co. Ltd ENVIRONMENTAL SERVICES Shenzhen SX (SHE) 300072.SZ

To view the full report, please visit:
http://www.abnnewswire.net/lnk/5U7014BT


About Sino CleanTech

Sino CleanTech publishes the China CleanTech Index and facilitates Chinese Cleantech investments and provides services to Government agencies across Asia to help stimulate investment in the Cleantech industry. These investments include looking at listed cleantech stocks and direct investment into projects and companies. Sino Cleantech is active in facilitating:

- Investment from Chinese investors into cleantech in both China and internationally; and

- Investment from international investors into the Chinese cleantech market.

Please contact us if you are looking for funding or seeking investments.

 

Contact

John O'Brien Managing Director Sino CleanTech Ph: +61 419 826 372 john.obrien@sinocleantech.com Katie Xiong Manager, Sino CleanTech Australia: +61 411 638 603 China: +86 137608 85298 katie.xiong@sinocleantech.com