Proprietary analysis identifies China as region with high risk to water resources

    In a recent UBS Q-Series report, UBS Evidence Lab’s geospatial and hydrology teamsdeveloped a watershed risk index that allows equity analysts to assess the level of waterrisk in China, and it identifies China as a high-risk region from the perspective of waterresources. According to the report, water risk in China is likely high enough to disrupteconomic growth, and according to the World Resources Institute Water Risk Index,major economic zones in China (Beijing-Tianjin-Hebei, Shandong, Shanghai-Jiangsu-Zhejiang, Guangdong-Fujian, etc.) are categorized as medium- to high- or evenextremely high-risk regions in terms of water, with some of the south-eastern provincesexpected to shift into the high-risk category.

    Water shortage and pollution require better treatment solutions

    China’s water shortage and pollution have become increasingly concerning and riskdisrupting economic growth. The government and corporates are investing moreresources to tackle the issue. The government has been raising water treatmentstandards, and some leading cities (eg, Beijing) have started to promote waterrecycling. These higher standards require better and more advanced water treatmentsolutions. Beijing Originwater, as the leading membrane-based solution provider, is wellpositioned to benefit from the structural trend, in our view.

    Originwater