Chinese Water Investments

Profitable Stock Opportunities from China’s Acute Water Problems

© Daniel Workman

Polluted water, morguefile.com ref id 101751

As China grows richer, startling statistics show that safe water remains a "must-have" necessity for millions of Chinese dying from water contamination.

Less than 15% of China’s 1.3 billion people access safe drinking water from a tap.

China uses up to 15 times more freshwater overall than more developed countries while its usable water resources steadily decrease.

Further research from Aqua Terra Asset Management shows that two-thirds of China’s 600 largest cities don’t have enough water. Half of these cities have severely polluted groundwater while a quarter suffers critical water shortages. China’s northeastern provinces have it the worst, where half of China’s population has to live on only 14% of China’s total water resources.

Each with 7% of the Earth’s total fresh water, the People’s Republic has the same amount of water as Canada. However, there are 40 times more Chinese than Canadians.

China’s water reserves are a mere 25% of the global average. According to the United Nations, China is one of the 13 countries with the lowest water per capita in the world.

There are two interrelated reasons why water is a scarce commodity in China:

Here are some more alarming statistics about China’s water situation:

Chinese Water Opportunities

Over the next 5 years, the People’s Republic will spend over US$125 billion on its water infrastructure. This opens up China to foreign investment, and motivates participation in China’s water industry which Aqua Terra estimates will grow 15% this year accelerating up to 20% through 2010.

Investorideas.com describes two individual companies set to benefit from Chinese water demand. Hendrx Corp. (HDRX on OTCBB) is a water technology company that provides water generation, filtration, ionization and purification.

WaterBank of America (WBKA on OTCBB) makes bottled water and hygienic, ready-to-freeze ice cubes known as ICEROCKS. These products offer an alternative to unsafe water supplies and thus complement Beijing’s efforts to upgrade the country’s water resources.

Perhaps the surest investments to benefit from China’s water industry buildout come in the form of established players in the global water industry, such as:


The copyright of the article Chinese Water Investments in International Trade is owned by Daniel Workman. Permission to republish Chinese Water Investments must be granted by the author in writing.


Polluted water, morguefile.com ref id 101751
       


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