Profiting From China’s 5-Year $454 Billion Environmental Initiative

China plans to more than double its environmental protection spending through 2015.

According to Bloomberg, the world’s largest producer of greenhouse gasses is looking to cut back on its environmental impact potentially to the tune of $454 billion in spending over the next five years. Investors are rushing to place bets on potential beneficiaries, sending select Chinese names higher by double-digit percentages.

Century Securities analyst Yan Biao told Bloomberg, “The increase in spending will benefit equipment manufacturers in water treatment, air pollution control, and also developers in the renewable energy sector.”

As a whole, the Wind Energy Stocks Index is pushing higher by 2% today as Chinese component A-Power Energy Generation Systems (APWR) surges by 11%.

A-Power hit a five-month high last week after announcing plans to open a production facility in the U.S.. Now trading above the $16 mark, there is little technical resistance to the upside. A-Power will certainly be a stock to watch if it is able to secure a share of China’s 12-figure stimulus.

Meanwhile in the solar sector, Chinese players are moving higher again. The Chinese Solar Stocks Index has taken a breather over the last week, after a powerful earnings rally sent shares higher across the board.

Canadian Solar (CSIQ), Solarfun Power Holdings (SOLF), and Trina Solar (TSL) are among the top performers over the last month, up by more than 20%. Meanwhile, LDK Solar (LDK), Yingli (YGE), and Suntech Power Holdings (STP) could also benefit if government spending provides more demand for solar equipment.

Chinese components of the Energy Storage and Battery Technology Stocks Index are also surging today. China BAK Battery (CBAK) is setting the pace with a 16% spike.

Chinese environmental control and remediation firm RINO International (RINO) is up big as well. The stock is now ahead by more than 25% in the last month.

For more Chinese environmental plays, investors can look to the broad China Stocks and ADRs Index, or one of tickerspy’s many green-focused subsector Indexes.

Tags: APWR, CBAK, CSIQ, LDK, RINO, SOLF, STP, TSL, YGE