What is China's 'most vexing problem'?

Whipping industrial companies into shape over air pollution

Last October, we travelled to Wuhu in the eastern Anhui province, about 350 kilometres from Shanghai, writes John Lin, portfolio manager of Chinese equities at AllianceBernstein.

When we woke up and looked out the hotel window, the thick grey smog that covered the city provided a potent reminder of one of China's most vexing problems: air pollution. Chinese companies are facing increased pressure to clean up their act on environmental issues. In our visits to some of the biggest cement factories across the country, we found out what is really happening and why it matters. That view featured in our discussions with managers and employees of Anhui Conch Cement Co, one of China's biggest cement producers. Chinese equities: Buying a pig in a poke? The sheer ...