Smog Puts Focus on Air Outside Beijing

October 21, 2013, 6:23 PM

Smog Puts Focus on Air Outside Beijing

A woman wearing a mask checks her mobile phone on the square in front of Harbin’s landmark San Sophia church, in China’s Heilongjiang province on Oct. 21. Although Beijing’s air pollution has somewhat abated since earlier this month, parts of northern China on Monday were covered in thick smog, forcing the closure of some schools, airports and highways in the region.

The conditions are a stark reminder that while Beijing gets most of the attention when it comes to China’s poor air quality, neighboring industrial zones contribute a significant share of the region’s air pollution.

The start of the winter heating season has created a blanket of heavy smog over the northern provinces of Heilongjiang, Jilin and Liaoning, China’s official Xinhua news agency reported.

For example, in the Heilongjiang capital of Harbin, the density of small, health-threatening particulates known as PM2.5 exceeded the maximum level of 500 micrograms per cubic meter, leading to the closure of a major airport, the suspension of all primary- and middle-school classes and the halting of some bus services, Xinhua said. The news agency added that visibility in Harbin was less than 50 meters.

The U.S. Environmental Protection Agency says those readings are “extremely rare” in the U.S. and typically occur during events such as forest fires.

A wide gap in temperatures between day and night, and the beginning of winter heating season are the reason for the smog, Xinhua reported, citing meteorologists.

Last week, the Beijing municipal government outlined a plan to control pollution-intensive local industries by 2017. Although the plan is aimed at controlling the expansion of local cement, steel and refining industries, it also includes coordination with neighboring areas of Hebei and Tianjin, which are major hubs for these industries. Beijing’s plan calls for its neighboring regions to also control their industrial capacity and set pollution-reduction targets.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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