Clean Energy -ChinaHongKong Business Tech, green stocks the order of the day 2015-03-13 06:32 By Celia Chen in Hong Kong(HK Edition) Mainland concept shares ride high on government's strong policy backing Around this time every year, stock analysts in Shanghai and Beijing are obliged to work overtime, rummaging through rims and rims of reports, speeches and, yes, offhand remarks of the hundreds of officials and delegates at the two sessions. Their mission is to find clues, inspiration and, of course, perceivable themes to compile the list of concept stocks to generate trades by firing the imagination and tantalizing the emotion of their clients. This year, the overriding themes picked out by most analysts are technological innovation and environmental protection, or, to put it simply, tech and green. Internet stocks and energy solution provides are hot while companies involved in the "traditional" industries, including manufacturing, retail, finance and catering, are considered pass, at least for now. Anyone who may doubt the soundness of the stock analysts' choice should pay heed to what Premier Li Keqiang has said: "We will develop the 'Internet Plus' action plan to integrate the mobile Internet, cloud computing and big data." Apparently, those stock gurus in Hong Kong also have been listening. They said the premier's words "Internet Plus" rang in their ears and raised their expectations for Internet companies. "Cloud computing and mobile payment will boom in the future," said Hanna Li Wai-han, a strategist at UOB Kay Hian (Hong Kong) Ltd. "I expect more specific and stronger financial support (from the central government) to come to those new sectors." Unsurprisingly, Tencent Holdings has become everybody's darling. It's still at the top of many stockbrokers' recommended list although its share price has already surged by some 25 percent in recent months. Tencent shares closed 0.08 percent higher at HK$131.8 on Thursday. "Tencent's current share price doesn't do justice to its projected profit growth in advertisement and mobile payment," said Li. "The upside potential is still strong," he said. Other companies high in the concept stock list include Kingdee International Software Group Co Ltd and Chinasoft International Ltd, which are leaders in the mainland cloud computing industry, stock analysts said. Liao Qun, chief economist at China CITIC Bank International, agreed that innovative sectors, especially the major Internet companies, will benefit from government policy support. The environmental segment of the market has also got a boost from the premier's report which says: "We will fight to win the battle of conserving energy, reducing emissions and improving the environment." Li of UOB said major green stocks related to water treatment and garbage-to-energy projects are expected to outperform the stock market. Her picks include Beijing Enterprises Water Group Ltd, CT Environmental Group Ltd and Everbright International. Liao said environment-friendly stocks could enjoy strong policy support also. "Green stocks are worthy investment in the longer term," Liao said, but warned that stocks that have seen a price surge in recent weeks may not perform as well in the near term. Stock analysts in Hong Kong and on the mainland said the central government has also indicated its intention to revive the growth of the nuclear-power industry with emphasis on environmental friendly development. UOB's Li said her favorite in this sector is China General Nuclear (CGN) Power Co Ltd, which has good growth potential. "Its capacity will be doubled when its new projects are complete," she said. By then, "its share price is expected to rise steadily, and I believe it's a great time to buy its shares now," she added. CGN gained 3.54 percent to close at HK$3.22 on Thursday. celia@chinadailyhk.com