Low-carbon companies' stocks have fared well for two consecutive days, riding high on political advisers' proposals on propelling the transition to a green economy.

Shenzhen Desay Battery Technology Co, a medium-sized primary lithium battery maker listed in Shenzhen, surged to its daily limits at the opening in the past two trading days. It closed at 12.77 yuan on Wednesday.

Jiangsu Sunshine Co, a manufacturer of polysilicon used in solar-power panels listed in Shanghai, surged 10 percent to 6.86 yuan in Wednesday's trading, while the benchmark Shanghai Composite Index edged up 0.78 percent.

A proposal by the Central Committee of the Jiu San Society - one of China's eight non-Communist parties - about developing the low-carbon economy was listed as the "No 1 proposal" to the Third Session of the 11th Chinese People's Political Consultative Conference (CPPCC) which opened on Wednesday, Securities Times reported, without elaborating.

"The 'No 1 proposal' has triggered market speculation that the government will make curbing carbon intensity a top priority at the upcoming legislative meetings," said Zhang Xiang, an analyst at Guodu Securities.

In addition, several other parties, including the China Zhi Gong Dang, have also proposed that the country make every effort to build a green economy.

The low-carbon sector advanced 2.54 percent on average on Wednesday. Shanghai Electric Group Co, a manufacturer of wind power equipment, also jumped to the 10 percent daily limit to close at 12.1 yuan.

Renewable energy related industries such as wind power and lithium-ion batteries will be the biggest beneficiaries as more policies to spur green tech are introduced, said Zhang Zhaowei, a senior analyst at Hua An Securities.

China vowed to cut its CO2 emissions per unit of gross domestic product by as much as 45 percent through 2020 at the Copenhagen Climate Summit held in December.

According to Xinhua News Agency, the government will include low-carbon targets in the 12th Five-Year Plan (2011-15) to build a more environmentally friendly society.

However, analysts expressed concerns that the recent bullish run, in particular in relatively small caps, may become lackluster when the speculative fever starts to lose steam.

"Generally speaking, concept-related stocks saw corrections after the legislative sessions since 2000, as market expectations were realized during the meetings," said Zhang from Hua An Securities.

Shenzhen Desay Battery's earnings per share were minus 0.29 yuan in 2009, when revenue from the core business declined 1.18 percent to 596 million yuan from a year earlier. The company's debt ratio was as high as 74.6 percent, indicating cash flow concerns.