Friday, October 9, 2009

Tap into Chinese Water

Water infrastructure in China is facing major challenges.
"China faces widedspread water scarcity, frequent floods in the south and east and droughts in the north and west. The country also suffers serious water pollution which heavily strains the environment. China's water supply is smaller than the United States but is home to approximately five times as many people. It is estimated that 300 million Chinese citizens have no daily access to clean water.....Over 700 million Chinese citizens drink water that does not meet current World Health Organization standards. Water usage in China has quintupled since 1949, and almost 90% of underground water in Chinese cities is affected by pollution........................................................In short, China is struggling to procure clean and provide enough potable water for a growing population....."
Not surprising, China is scaling up the spending on clean water projects
"Through 2010, China’s environmental investment is expected to be approximately $184.2B. Approximately $39.5B is expected to be used for water resource management, urban water management, wastewater treatment, sewage reuse and water treatment. Between 2007 and 2009, the Chinese allotted approximately $526M in special funds to establish a National Water Resources Management System.

In November 2008, the Chinese government announced a $585B stimulus package in response to the global economic crisis. This included approximately $3.3B for environmental projects."
To tap into this long term growth, let's have a snapshot of a few companies that work on waste water and water technologies: TRIT, DGW, VE, DHR. [Click to enlarge the diagram]

Disclaimer: Stocks/financial instruments mentioned in this blog are not to be taken as investment advice/recommendation. Readers must consult their own financial advisors and/or consider their own risk/reward profile before making investment/trading decisions. The blog author is not liable for any investment/trading decisions of readers should readers decide to base the decisions on information provided by the blog.

Disclosure: The blog author does not own any positions of the above mentioned stocks in her personal account as of October 8,2009

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