China targets more than 80% non-fossil energy


The measures are part of the nation’s larger plan for achieving peak carbon emissions
Newsfeed25 Oct 2021
    Photo credit: AFP Photo


    MAINLAND CHINA & HONG KONG

    China aims to have non-fossil energy consumption exceed 80% of its total mix by 2060, when the world’s second biggest economy plans to be carbon neutral, according to guidelines published by the official Xinhua News Agency.

    The measures are part of China’s larger plan for achieving peak carbon emissions and reaching net-zero by 2060, Xinhua said on Sunday (24 October). It reiterated the government’s climate goals for 2025 and 2030 and vowed to accelerate a decline in China’s coal use.

    The international community is waiting for China to make an updated commitment under the Paris Agreement as world leaders prepare for a high-stakes United Nations climate summit that starts on 31 October in Glasgow, Scotland. As the world’s biggest polluter, China can do more than any other nation at this point to curb the rise in global temperatures.

    China will also accelerate the development of industries including next-generation materials and clean energy vehicles, according to the guidelines. Investment in coal power, steel, electrolytic aluminium, cement, and petrochemicals will be strictly controlled.  – Bloomberg News.

    The Shanghai Composite Index fell 0.34% to 3,582.60 on Friday while the Hang Seng Index upped 0.42% to 26,126.93.

     

    REST OF ASIA

    Analyst estimates for Asia’s corporate profits have fallen to more than a decade low relative to global peers, and further downgrades are on the horizon as China’s economic growth slows and global supply constraints remain.

    After soaring past pre-pandemic levels on vaccine and reopening optimism, the 12-month forward earnings-per-share forecasts for MSCI Asia Pacific Index members began to drop in mid-September, led by cuts in Australia, South Korea, and some Southeast Asian countries such as Malaysia, according to data compiled by Bloomberg.

    Businesses and share prices in the region have suffered as economies have remained closed for longer than in the West, with China maintaining a Covid Zero policy and also cracking down on private enterprises. As supply chain bottlenecks add to worries about monetary policy tightening and energy shortages-fuelled inflation, traders see earnings projections taking a further hit before climbing back up next year.

    A key concern for Asia investors is that China’s regulatory clampdown and its property sector curbs have not been fully included in earnings revisions yet, and travel restrictions may be kept in place to ensure the Beijing 2022 Olympics are a success. Chinese stocks are the region’s worst performers this year, a key reason for Asia’s underperformance vs global peers.

    The MSCI Asia Pacific Index is little changed for the year, vs a gain of at least 18% for its US and European counterparts. China’s CSI 300 Index is down almost 5%. – Bloomberg News.

    South Korea’s Kospi Index fell 0.73% to 2,984.16 on Friday (25 October), extending its 0.04% loss to 3,006.16 the previous session.

    Australia’s S&P/ASX 200 Index was 0.50% higher at 7,452.90 on Monday, after closing flat at 7,415.50 on Friday.

    The Taiwan Stock Exchange Weighted Index was little changed at 16,888.74 on Friday.

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