china chinese water industry unique charactaristics regional monoply substitute transfer project public market success crisis shortage consumption drought solution utilities infrastructure deregulation investment opporturnity pollution investments venture equity capital market business investing USA public company. In China water could end up being more important than oil, director of the China Solar Energy Institute. To those who have been monitoring the situation, it is beyond doubt that water has emerged as the biggest constraint on economic development. Water has no substitutes regardless of price. China really poor in water. China appears to be a water rich country, having the sixth-biggest supply of water resources of 2413 bcm. water pollution, desertification and over-exploitation have combined to cut the amount available for use to 40-50% of this supply. China is now one of the world's 13 most water deficient countries. China is as dry as some regions in sub-Sahara Africa. China has 22% of the world’s population but only 8% of its freshwater. On a per capita basis, it fares worse. A huge and still-swelling population brings its water resources per person per year to around 1,856 cm – which is 22% of the world’s average, and 45% of Asia’s, INVEST CHINESE WATER works industry utilities infrastructure,Chinese water sewage waste treatment plants supply problems crisis drought irrigation pollution shortage.Water problems in China are creating a new opportunities
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China Water Works Industry AN OPPORTUNITY TO INVEST
IN THE CHINA WATER INDUSTRY
USA Public Listed Company. New China Ventures Ltd. (NCVL)
A Strategic Investment in Mainland China Water Industry		 B16L, Cheng Ming Building
No. 2 Xi Zhi Men South Street,
Xicheng Dist., Beijing, China -100035
Phone: 011 86 536 2958418
Email: info@china-waterworks.com		 Chinese water utilities investments,USA listed company
China water supplies,pollution,crisis,shortage. Besides pollution, the profligate practices of its farmers, industries and households – aided by underpricing of water – have further shrunk the per capita available for each person a year. Today, per capita water resources is just 30% of the 1949 level and if nothing is done swiftly, China will soon hit the numerical “threshold of concern” in water stress as defined by the United Nations – 1,760 cm per capita – a scenario which requires urgent remedial actions. Chinese water industry unique charactaristics regional monoply substitute transfer project public market success crisis shortage consumption drought solution utilities infrastructure deregulation investment opporturnity pollution investments venture equity capital market business investing USA public company. The concept of water stress applies to situations where there is not enough water for all uses, be it for agriculture, industry or homes. Hydrologists often refer to three thresholds of stress based on per capita water resources.
China water industry infrastructure utilities
Chinese Water Industry - Unique Characteristics
China water industry infrastructure utilities

Compared to the energy power or other utilities, the Chinese water sector has several solely unique characteristics.

China water industry infrastructure utilities
Regional Monopoly

Pipelines (including those for both tap water supply and drainage) are usually constructed with the government's guidance and it is not economical to duplicate pipeline systems merely for the purpose of competition. As water operation is attached to a pipeline operation, water operators are inclined to control pipelines to enhance their regional monopoly status, especially in negotiating tariffs with the government. With the "concession" business model becoming popular, there has been an increasing tendency of a single water operator dominating one city's water business with more vertical business integration.

China water industry infrastructure utilities
No Substitute for Water

Unlike electricity or gas, there are no other alternatives to substitute water. As such, water has low price elasticity and the government does regulates tariffs. The government typically levies water resource fees, which are one component of end-user tap water tariffs, to fine-tune water demand and promote water conservation.

China water industry infrastructure utilities
Difficulty of Inter-Regional Transfer

Because water is easily polluted and can evaporate or leak, transferring water across long distances is rather difficult. Only in several exceptional cases has raw water, rather than tap water, been carried over long-distances (e.g. Dongshen Project for Guangdong and Hong Kong, South-to-North Water Transfer Project) in China. Even the transfer of raw water involves extremely high construction costs for pipelines.
China water industry infrastructure utilities
Given the strict requirements and huge pipeline construction costs, it is not economically viable to transfer tap water over long distances, which makes the water sector's monopolistic nature more evident. It will be essential that good water management policies be implemented in each region to provide clean water to the population and to promote good water conservation.

China water industry infrastructure utilities
Public Market Success
China water industry infrastructure utilities

In its report published on the Chinese water sector, BOCI identified several major listed companies that participate in the same markets as NCVL.

Invest in China water industry infrastructure utilities

These companies are publicly listed in China, Hong Kong and Singapore and their statistics can provide a fairly accurate forecast for the potential of NCVL.

Invest in China water industry infrastructure utilities

In addition, according to statistics compiled by Summit Global Management, a US water investment consultancy company, the US equity market also have a number of public waterworks companies have demonstrated above average returns on investments as detailed below.

Invest in China water industry infrastructure utilities
water returns 5 to 10 year summary
Invest in China water industry infrastructure utilities

*Compiled by Summit Global Management Inc. - An equally-weighted list of all publicly traded U.S. water utility stocks that existed as of 12/31/05. Importantly, this is a negatively-selected list, in that some public water utility stocks were acquired during the years depicted above, and the returns on those acquired companies, normally purchased at large premiums to market prices, are not included herein. Thus, if this compilation included the returns of all water utility stocks that were trading at the beginning of these periods, the returns may have been substantially higher.

The following table illustrates a list of widely held U.S. stocks participating in the US water industry and the above average rates of returns for the most recent 10-year period (12/31/1995 through 12/31/2005).

Invest in China water industry infrastructure utilities
symbol name return 1995 - 2005
Invest in China water industry infrastructure utilities

The statistics compiled show that in the U.S. market, the water utilities sector has relatively outperformed the market. This is positive for NCVL as the Company will be publicly listed in the U.S. and will be seeking several tranches of equity financing in the U.S.


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Creating one New York a year strains water resources. Vice-minister for Construction who described his country's water crisis as the worst in the world. deteriorating, especially given China's urbanisation chinese water industry unique charactaristics regional monoply substitute transfer project public market success crisis shortage consumption drought solution utilities infrastructure deregulation investment opporturnity pollution investments venture equity capital market business investing USA public company