环保行业周报：化债政策：激活地方财政滚动的关键一击

Investment Rating - The report maintains an "Overweight" rating for the environmental protection sector [3]. Core Viewpoints - The introduction of debt reduction policies is seen as a crucial measure to activate local fiscal rollovers, with a target to eliminate hidden local government debts by the end of 2028 [3][7]. - The report highlights significant growth in carbon market transactions, with a notable increase in trading volumes and prices, indicating a robust market environment [12][13]. - Short-term stock price elasticity is expected to be highest for environmental companies with strong balance sheet repair potential, while long-term cash flow normalization is anticipated for leading companies in environmental operations [9]. Summary by Sections Weekly Investment Insights - The 14th National People's Congress Standing Committee approved a resolution to increase local government debt limits by 6 trillion yuan to replace hidden debts, aiming to reduce the total hidden debt from 14.3 trillion yuan to 2.3 trillion yuan by 2028 [6][7][8]. - The report suggests that the debt reduction measures will improve the accounts receivable recovery situation for environmental companies, enhancing their financial health [9]. Environmental Sector Weekly Performance - The environmental sector saw a weekly increase of 6.37%, outperforming other sectors such as gas and water [12]. - Top gainers in the environmental sector included He Xin Instrument (+68.10%) and Xingyuan Environment (+61.20%) [12]. Carbon Neutrality Tracking - The national carbon market saw a transaction volume of 7.1079 million tons, a 702% increase from the previous week, with an average transaction price of 101.75 yuan/ton [12][13]. - Local exchanges reported a decrease in carbon quota transactions, but an increase in average prices, indicating a mixed market response [12]. Important Events in the Environmental Industry - The Ministry of Ecology and Environment released a report detailing China's climate change policies and actions, showcasing progress in carbon market construction and global governance participation [14]. - New regulations on river pollution discharge management were introduced to enhance monitoring and management practices [15]. Major Announcements from Environmental Companies - Chongqing Water received approval for a public bond issuance, indicating ongoing financial activities within the sector [17]. - Several companies, including He Xin Instrument and Zhongzi Technology, announced share buybacks, reflecting confidence in their stock valuations [18].