For the latest notice of the Ministry of environmental protection issued, Huatai Securities believes that the number of the EIA approval principles issued, to a certain extent, good environmental protection industry development, especially the pollution control and monitoring of cement manufacturing, pharmaceutical industry and other industries, the most benefit from the sub industrial waste gas (including dust desulfurization and denitrification, new VOC) and in the treatment of wastewater, and environmental monitoring, concerned about the proposal related to the subject. The significance of this policy is more important, is reflected in the change of government ruling ideas, and in 2016 after the top-level design, the requirements for environmental protection has gradually entered into the deepening level, with the deepening of the policy to promote the environmental protection industry will gradually enter the market release period.

The general secretary Xi Jinping in the 2017 New Year's message, also highlighted the "to" each river long river ". CITIC Securities believes that due to the river and water environment suitable for the watershed or regional governance, long river system is proposed to break the traditional mode of governance in the Administrative Region under the governance problems caused by segmentation, the control effect of the main responsibility for the implementation and the main responsibility to implement the highest handle on the head. In the long river system gradually fall, systematic governance process, industrial wastewater, sponge City, black smelly water will expand the water environmental capacity of the market, while the PPP mode will also speed up the market to promote the rapid transformation of corporate performance, 2017 water mark or the overall performance than expected.