Source: Business Wire Jun. 7, 2010 – The China Low Carbon Index Creates Benchmark for Chinese Low Carbon Investment Community
BEIJING–(BUSINESS WIRE)– The China Beijing Environmental Exchange (“CBEEX”) and VantagePoint Partners, a global leader in CleanTech investing, today launched the first Chinese low carbon equity index. The China Low Carbon Index (“the Index”) is the first index to track China’s CleanTech sector and the first RMB-denominated low carbon index. The China Low Carbon Index was officially announced at the Earth Temple Forum being held in Beijing.
The Index will provide investors with valuable insight into Chinese CleanTech companies, which have often outperformed their peers in other markets: VantagePoint’s research and analysis of China’s CleanTech sector found that the market capitalizations of the companies included in the China Low Carbon Index have increased more than 259 percent since 2007.
The Index, which includes 35 publicly-traded Chinese companies, covers four main CleanTech sectors including clean-energy generation, energy transfer and storage, clean consumption and production, and waste management. Within these four sectors, the companies on the Index fall into nine distinct segments: solar energy, wind power, nuclear power, hydropower, clean coal, grid equipment, battery, energy efficiency, waste management and water treatment. As of May 28, 2010, renewable energy companies (including solar, wind and hydro power) comprise 55 percent of the Index.
“Faced with the reality of global climate change, China has become a vanguard in developing a low carbon economy,” said Yan Xiong, Chairman of CBEEX. “However, we are also aware that, as a country in the midst of industrialization and urbanization, our low carbon economy is still small in scale.” In creating the China Low Carbon Index, “CBEEX and VantagePoint sought to develop a benchmark for the Chinese low carbon investment community to represent China’s CleanTech sector in a transparent and comprehensive manner,” said Dewen Mei, General Manager of CBEEX.
In addition, by raising the profiles of China’s leading new energy companies, the Index will play a role in enhancing their long-term development, both domestically and abroad. Until the launch of the Index, many investors had been unaware of the number, scale, and financial success of these companies. “We are very glad that VantagePoint was able to lend their experience and expertise in the CleanTech sector to assist us in creating this valuable tool,” added Yan.
“China already leads G-20 countries in clean energy investments and is second only to the U.S. in terms of installed renewable energy capacity,” said Melissa Guzy, Managing Director of VantagePoint in China. “In addition, the Chinese government is clearly committed to promoting the development of renewable energy for the long-term, with ambitious and mandatory targets in place for the next 10 years.”
“As a quantitative measurement of the development of China’s low carbon industry, this Index will serve as an excellent reference point as we evaluate the effects of government policy,” said Prof. Dinghuan Shi, a Counselor to the State Council of the People’s Republic of China and Chairman of the China Renewable Energy Society. Professor Shi is a member of the China Low Carbon Index Advisory Committee.
“We are honored VantagePoint was able to join with the Municipal People’s Government of Beijing and CBEEX in developing the first China Low Carbon Index,” said Alan Salzman, CEO and Managing Partner of VantagePoint Partners. “As a leader in global CleanTech investments, VantagePoint appreciates the importance of China’s role in the growing CleanTech space,” he added.
The companies included in the China Low Carbon Index were selected out of an extensive list of China-based companies. All of the companies selected are listed on stock exchanges either in Mainland China, Hong Kong or the United States. All of the companies derive at least 50 percent or a minimum of RMB 3.5 billion (US$512 million) of their total revenues from low carbon businesses.
The China Low Carbon Index uses the modified capitalization-weighted methodology, with the weight of individual shares not exceeding 5 percent. The total market capitalization of companies included is US$110.5 billion, including market leaders such as Suntech Power (NYSE: STP), Goldwind and the BYD Company.
The Index Advisory Committee will make recommendations to the Index Selection Committee, which will meet quarterly to make necessary adjustments so as to maintain the Index’s accuracy and consistency and reduce performance distortion.
Additional details about the Index can be found at www.chinalowcarbonindex.org.
About VantagePoint Partners
VantagePoint Partners is a leader in investing in 21st century technologies and partners with entrepreneurs in the CleanTech, Healthcare and Information Technology sectors. With an extensive industry-leading investment team of experts, a broad network of important Strategic Partners and Senior Advisors, and more than $4.5 billion in committed capital, the Firm has the depth of resources to help build transformative companies that are clear leaders in their fields. The Firm, headquartered in Silicon Valley with important offices in Hong Kong and Beijing, has investments in more than 70 companies, including notable CleanTech companies Better Place, Bridgelux, BrightSource Energy, Chemrec, MiaSolé, Ostara Nutrient Recovery Technologies, Serious Materials, Solazyme, SuperBulbs, Tesla Motors and Tendril Networks. For more information, visit www.vpvp.com.
China Beijing Environment Exchange (CBEEX) was founded on Aug 5th, 2008, established with the approval of the Beijing municipal government, which is a professional market platform for trading various environment equities. CBEEX is an operational organization for open and centralized transaction of environment equity, established by China Beijing Equity Exchange (CBEX), CNOOC New Energy Investment Co. Ltd, China Guodian Corp. and China Everbright Investment Management Corp. CBEEX is a public platform using economic measures to address environmental issues. Through its advanced transaction system and extensive network of membership and partnership, CBEEX tends to realize optimization of resource allocation, minimization of pollution abatement cost and transaction cost, cost-effectiveness of environmental governance. Therefore, CBEEX takes the development of resource-saving and environment-friendly society as its primary responsibility, and contributes to the realization of sustainable development through financial innovation. For more information visit www.cbeex.com.