Chart Book

Chart of the day: The real cost of water scarcity

PUBLISHED : Saturday, 23 August, 2014, 1:06am
UPDATED : Saturday, 23 August, 2014, 1:06am

Mainland water is widely regarded as an underpriced asset, given the huge demand and its relative scarcity. The mainland has about 7 per cent of the world's water yet uses about 16 per cent of it - a trend that is only likely to increase. Polluted water creates an additional stress on the system. The increase in polluted groundwater between 2006 and 2012 contaminated 3 per cent of supply, according to calculations by Credit Suisse. The bank's analysts say delivering sustainable water management must see tariffs more than double. The average municipal water tariff should be seven yuan (HK$8.80) per tonne from the present 2.80 yuan to cover the cost of improvements. SIIC Environment Holdings and Beijing Enterprises Water Group are the firms Credit Suisse believes will benefit the most if that happens.