Core Viewpoint - The construction of beautiful rivers and lakes is essential for enhancing the ecological environment and improving public welfare, reflecting the continuous improvement of water quality in China since the new era [1][2][3] Group 1: Water Quality Improvement - Since 2016, the comprehensive water environment management in Nanjing's Qinhuai District has transformed the Moon Lake from a "black and stinky lake" to a beautiful "underwater forest," now serving as a bird sanctuary [1] - By 2024, the proportion of national surface water quality classified as good (Class I-III) is expected to reach 90.4%, marking the first time it exceeds 90% [1] - The Yangtze River and Yellow River have maintained Class II water quality for five and three consecutive years, respectively, indicating significant ecological recovery [1] Group 2: Systematic Governance - The concept of beautiful rivers and lakes emphasizes the need for a systematic approach to integrate the protection and governance of mountains, waters, forests, fields, lakes, grass, and sand [2] - Collaborative governance is crucial for cross-regional river management, as demonstrated by the establishment of a pollution control coordination mechanism between Shenzhen and Dongguan, which improved the water quality of the Meizhou River from severe pollution to Class III [2] - The ecological compensation mechanism in the Xin'an River basin has effectively reduced pollution loads entering the lake, maintaining the water quality of Qiandao Lake at Class I [2] Group 3: Economic and Social Development - The construction of beautiful rivers and lakes is also a process of balancing high-level protection with high-quality development, as seen in Xuancheng, Anhui, where 18 eco-tourism sites and 1,072 homestays have been developed [3] - The exploration of innovative pathways for realizing the value of ecological products can facilitate the transformation from green mountains and clear waters to economic benefits, promoting a comprehensive green transition in socio-economic development [3] - The ongoing efforts to build beautiful rivers and lakes will contribute to a new landscape of green and high-quality development, benefiting the community and enhancing cultural vitality [3]

Core Viewpoint - The "Beautiful Rivers and Lakes Protection and Construction Action Plan (2025-2027)" has been officially released, marking a significant step in water management and ecological restoration in China [1][2]. Group 1: Action Plan Overview - The Action Plan aims to achieve a vision of "clear water and green banks, with fish swimming in shallow waters," focusing on the systematic protection of water resources, environment, and ecology [1]. - The plan is part of the broader "Beautiful China" initiative, emphasizing the importance of beautiful rivers and lakes as key components of ecological health [1]. Group 2: Economic and Social Implications - The construction of beautiful rivers and lakes is not only about ecological governance but also relates to economic development and the well-being of the populace [2]. - For instance, the governance of Shenzhen's Maozhou River has released 15 square kilometers of waterfront space, attracting over 180 technology companies [2]. - The integration of ecological value into economic development is highlighted, with examples from Zhejiang province exploring mechanisms to reinvest ecological funds into water improvement projects [2]. Group 3: Governance and Collaboration - The Action Plan emphasizes the need for coordinated governance across regions, addressing challenges in cross-regional collaboration for river and lake management [3]. - It proposes effective ecological flow guarantees for key rivers and lakes by 2027, promoting a comprehensive and multi-faceted governance approach [3]. Group 4: Ecological Restoration Focus - The Action Plan prioritizes quality improvement and efficiency, addressing not only water pollution but also ecological restoration [5]. - The significance of maintaining biodiversity through river and lake governance is underscored, linking ecological health to human well-being [5].

Investment Rating - The report maintains a "Buy" rating for key companies in the environmental sector, including Huicheng Environmental, GaoNeng Environment, and HongCheng Environment [5][36]. Core Insights - The report highlights the issuance of the "Beautiful Rivers and Lakes Protection and Construction Action Plan (2025-2027)" by the Ministry of Ecology and Environment and other departments, aiming for a 40% completion rate by 2027 and significant improvements by 2030 and 2035 [10][11]. - The report emphasizes the importance of industrial park wastewater treatment standards and the need for differentiated management based on the type of industrial park [23][35]. - The current macroeconomic environment, characterized by historically low interest rates, presents opportunities for high-dividend and growth-oriented assets in the environmental sector [2][36]. Summary by Sections Investment Views - The report discusses the "Beautiful Rivers and Lakes Protection and Construction Action Plan," which aims to enhance water ecological governance and attract social capital for joint management [10][22]. - It also mentions the release of technical guidelines for wastewater discharge standards in industrial parks, focusing on a classification management approach [23][35]. - The report suggests focusing on companies involved in environmental monitoring and treatment, such as JuGuang Technology and HongCheng Environment [22][35]. Market Performance - The environmental sector underperformed compared to the broader market, with a decline of 1.47% against a 0.57% drop in the Shanghai Composite Index [38]. - Notable stock performances include Shenwu Energy (+27.51%), Huicheng Environmental (+13.77%), and Anche Detection (+11.05%) [38]. Key Announcements - The report includes various announcements related to environmental policies and performance ratings of key industries in response to pollution control measures [49][50].

Core Points - The "Beautiful Rivers and Lakes Protection and Construction Action Plan (2025-2027)" has been officially issued by the Ministry of Ecology and Environment and six other departments, marking a comprehensive deployment for water ecological environment protection following the "Water Ten Measures" [1] - Beautiful rivers and lakes are a significant embodiment of "Beautiful China" in the water ecological environment sector, aiming for a harmonious relationship between humans and water [1] Summary by Categories Water Resources - The plan emphasizes the importance of water resources through the utilization of recycled water and ecological flow regulation, ensuring the presence of rivers and water bodies [1] Water Ecology - The action plan aims to rejuvenate water bodies and buffer zones, restoring native fish species and submerged plants to achieve a vibrant ecological landscape [1] Water Environment - Strict pollution discharge controls are mandated to ensure high water quality while accommodating citizens' recreational needs, promoting a harmonious living environment [1] Economic and Social Development - The construction of beautiful rivers and lakes is seen as a process that integrates high-level protection with high-quality development, transforming ecological advantages into developmental benefits [2] - The Ministry of Ecology and Environment has set ambitious targets, including a 40% completion rate for beautiful river and lake projects by 2027 and significant progress by 2030 and 2035 [2] Performance Metrics - As of 2024, the proportion of national surface water quality rated as good (Class I-III) is projected to be 90.4%, exceeding the "14th Five-Year Plan" target by 5.4 percentage points and improving by 7 percentage points since 2020 [2]

Group 1 - The implementation of the "Beautiful Rivers and Lakes Protection and Construction Action Plan (2025-2027)" will drive the development of multiple industries, with companies encouraged to pay attention to local policy implementation to seize market opportunities [1][6] - The plan sets three phased goals for the construction of beautiful rivers and lakes, aiming for a completion rate of approximately 40% by 2027, significant results by 2030, and basic completion by 2035 [1][6] - The plan emphasizes the need for a comprehensive ecological environment governance system that connects upstream and downstream areas, focusing on improving water ecological environment quality [4][5] Group 2 - The concept of beautiful rivers and lakes includes stable water resources, effective ecological function maintenance, and significant improvement in water quality, enhancing public satisfaction with the ecological environment [2][4] - The plan outlines specific measures for pollution control, including the investigation and remediation of pollution sources along riverbanks, and the construction of urban sewage collection and treatment facilities [5][6] - Key industries expected to benefit from the plan include environmental technology and water treatment, ecological restoration and landscaping, new energy and green shipping, agricultural pollution control, water conservancy engineering, ecological tourism, environmental monitoring, and green finance [6]

Core Viewpoint - The "Beautiful Rivers and Lakes Protection and Construction Action Plan (2025-2027)" has been officially released, marking a comprehensive strategic deployment for water ecological environment protection in China, following the "Water Ten Measures" plan [1]. Group 1: Action Plan Overview - The action plan signifies a shift from pollution control to a collaborative governance approach that integrates water resources, water environment, and water ecology [1]. - The plan sets strict standards for defining "Beautiful Rivers and Lakes," focusing on water resources, ecological restoration, and pollution control to achieve a harmonious relationship between humans and water [1]. Group 2: Goals and Timeline - By 2027, the goal is to achieve a construction rate of approximately 40% for Beautiful Rivers and Lakes; by 2030, significant progress is expected; and by 2035, the basic construction of Beautiful Rivers and Lakes should be completed [1]. - The action plan includes the entire main stream of the Yangtze River (6,300 kilometers) and the Yellow River (5,400 kilometers), as well as over 90% of the 210 key lakes and reservoirs nationwide [2]. Group 3: Focus Areas - The action plan emphasizes improving quality and efficiency, addressing not only water pollution but also water resource management and ecological flow guarantees [2]. - Small water bodies, such as ditches and rural ponds, are encouraged to be included in the Beautiful Rivers and Lakes initiative, provided they are managed according to local conditions [2].