Investors cash in on trash

Shanghai Securities. "With more government funding and favorable policies coming out in the future, the sector holds value for long-term investment."

While experiencing rapid growth, Chinese waste service companies are also actively expanding into overseas markets. Beijing-based environmental company Sound Group, the parent of Eguard Resources, recently made a successful bid worth 560 million yuan for sewage treatment in Saudi Arabia. It was reported to be the first time a Chinese environmental company would provide waste management services outside of the country.

Zhu said waste-related companies are likely to see stable revenue growth with adequate capital flow as they are part of the public utility sector with the government being their major client.

(Source: China Daily)