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During The 2006-2010 Period The Water Price In China May To Rise By 50%-100%

Posted on: Tuesday, 14 November 2006, 09:00 CST

Research and Markets (http://www.researchandmarkets.com/reports/c45168) has announced the addition of "China's Water Affair Report (Investment and Development), 2005-2006" to their offering.

The year 2005 is quite important for China's water affair market. The Chinese government considers water price reformation as one of the three major price reformation projects. As a waste treatment fee came into collection and the water resource fee was improved in 2004 then in 2005 the water price in main cities rose a lot, quite beyond peoples' expectation. In 2005, the waste treatment fee increased by over 50%, in major cities in China, especially in Beijing and Shenzhen etc. During the "Eleventh Five-Year" period (2006-2010), the water price may continue to rise by 50%-100%. China is now speeding up the pace of city-building; meanwhile, the income level of city residents is improving constantly, which has become the long-term driving force of water affair development. In addition, some monopoly industries, including the water industry, are gradually opened up to the social capital and a series of favourable policies are enforced to ensure the successful marketlization of water affair. Private capitals are now entering the water market. Along with the document issue of the Execute Water Price Reformation and Promote Water Saving by China State Council, the price of water supply in cities and the waste treatment fee will be rationally adjusted to ensure the daily operation of the enterprises and to balance their profit. The reformation on water price also lays good foundation for investment into the water industry. In 2006, the direction of water marketlization reformation is clear and definite. The water market is gradually opened, and the overall framework of franchising operation and government supervision system is to be enhanced.

Naturally not only positive factors may act, but also negative factors such as fierce competition, capital operation risk and investment risk may have a profound effect on the development of the Chinese water industry. Up until now China has been a member of the WTO for 4 years and with increased openness of China's market, foreign capital will speed up into the Chinese water industry. It is now a real challenge for domestic water companies to win the competition against the foreign rivals.

According to the "Eleventh Five-Year" Plan, the reconstruction of the old water supply network which is over 50 years in service and the rebuilding of severely damaged water supply network in old city zones should be completed by the end of 2007. By 2010 the city water supply coverage should be no less than 95%. Waste treatment rate should be no less than 70% in designated cities and areas and the recycled water utilization rate in water shortage cities should reach 20%.

Great business potential lies in China's water market. The annual production of water supply is to increase from the current value of RMB 60-70 billion to RMB 150 -200 billion in 2010. The annual growth of the total water affair market is to maintain at about 15%. China is now reforming the water market, as well as the water price to create a better opportunity for investment and development. The next 5-10 years is the key period of the development of China's water affair.

This report has the following four parts: status quo analysis and prospect forecasts, competition strategy, company development strategy and analysis on opportunities and risks of investment.

We offer reliable source for readers to grasp the development trend of China's water affair and help outline the suitable competition strategy. We obtained our data from authorities such as Ministry of Water Resources, State Information Center, national Bureau of Statistics, etc.

Please note this report is currently only available in Chinese. However, if you wish to obtain an English version, a translation service is available which will take 3-5 working days. For further information, please click "Enquire before Buying."

Topics Covered:

Analysis of the Operation Situation of Water Affair, 2005 Development Circumstances of Water Affair 2005-2006 Development Forecast of Water Supply and Water Source Market 2005-2006 Development Forecast of Waste Treating Market, 2005-2006 Reclaimed Water Recycle and Water Saving Market, 2005-2006 Analysis of Reformation on Water Price Competition Status and Competition Strategy of Water Affair Enterprises, 2005 Analysis of the Investment & Financing Strategies in Water Affair, 2005-2006 Form of Group Companies and Capital Operation in Water Affair Development Forecast of Water Affair, 2005-2006 Analysis and Forecast of Circumstance for Water Affair, 2006 Investment Risks in Water Affair, 2006 Suggestions on Investment into Water Affair

For more information visit http://www.researchandmarkets.com/reports/c45168.

Source: Business Wire

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