Chart Book is featured daily column at SCMP.com and in print in the South China Morning Post. It brings readers a combination of exclusive sentiment barometers on equity markets, practical technical analysis flagging likely moves across a range of asset classes, and smart graphics that offer insight into evolving market trends.
Chart of the day: The real cost of water scarcity
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.