COVID-19's unfortunate impact has been pervasive and for many countries it is still continuing to escalate unpredictably, setting off economic uncertainties around the globe. What is clear is that the pandemic has exposed each country's social, economic and environmental vulnerabilities and inadequacies, which cannot be glossed over nor are they transient. Governments have made addressing these issues key priorities, assigning a level of urgency never before experienced. China and other Asian countries have been able to contain the continuing spread of the pandemic and are now impressively embarking on the road to economic recovery. However, the impacts of COVID-19 have prompted governments and their economists to rethink and restructure the direction of their economies. In the case of China, the government has turned its focus on stimulating domestic economic growth through advancing technology adoption and upgrading city infrastructures to mitigate the proliferation of pollutants and contaminants that can lead to greater issues of public health.
This magnified priority on the health and well-being of the people, and the commitment by the government to reduce environmental pollution across China, is creating unprecedented opportunities for institutional investors to invest in successful green industries in China that are far outpacing GDP growth rates. To note, China's GDP growth for second quarter was 3.2%, although this pace is likely to be more challenging to keep up as the global pandemic continues.