Research Report of Chinese Urban Water Supply Industry, 2009
In the 1980s, China developed a large number of self-built water supply facilities. After entering the 1990s, marked development had been achieved in the constructions of the public water supply facilities.
From 1993 to 2005, the lengths of Chinese urban water supply pipelines showed the band-like growth. From 1993 to 1995, the lengths of the water supply pipelines were increased from 123,007 kilometers to 138,701 kilometers, 6.2% of the annual average growth rate, which took place large growth in 2006, and the growth rate reached 46% and the total lengths jumped to 202,613 kilometers. During 1997 to 2000, the lengths of the urban water supply pipelines showed the steady growth and the annual growth rate was 5.8%; the respective lengths were 215,587kilometers, 225,361 kilometers, 238,001 kilometers and 254,561 kilometers. After 2001, the growth speed was also very fast and the annual average growth rate was about 9%. In 2006, the lengths of the water supply pipelines amounted to 430,397 kilometers.
From 2003 to 2006, China totally newly added 148,345 kilometers of urban draining pipelines and the disposal capacity of the urban sewage was 48.17 million tons/day. In 2006, the urban water supply volumes reached 54.1 billion tons, up by 15.9% compared with 2002; the popularizing rate of the water consumption reached 86.7%, up by 8.8 percentage points compared with 2002; the lengths of the urban gas supply pipelines were 189,000 kilometers, up by 65.8% compared with 2002; the popularizing rate of the gas consumption reached 79.1%, up by 11.9 percentage points over 2002.
For a long time, the price of the water is usually lower than the costs of the water resources. From the long term, it is inevitable to increase the price of the water. However, China is in the successive industrialization and urbanization phase. It is impossible to increase the price of the running water sharply.
At present, the price of the water in China is low and the formation mechanism is not very perfect; the water supply enterprises all face the losses; the update of the equipments is aground; the low sewage disposal rate leads to the pollution aggravation. To increase the price of the water supply is not only the need to construct the water saving country, but also the need to guarantee the investments and achieve the sustainable development.
The major problems in Chinese urban water supply industry:
First, the systems are backward. Traditionally, Chinese water supply industry had been operated monopolistically by the government, let alone market competition, which reflected in following two aspects: there was no clear line between the government and the enterprises. The production, operation and investments of the urban water supply were arranged by the government; second, the government decided the price of the water and the price could not reflect the market discipline. From 2002, Chinese government issued a series of policies to propel the reform in the water supply industry, propel the marketization of the urban water supply industry. At present, marked achievements have been attained.
Second, the water supply infrastructure is insufficient and the water supply capacity needs improving. The present urban water supply infrastructure is old and aging, which can not receive prompt reform due to the government capital shortage. The leakage of the pipelines and the poor management result in the serious waste of the water resource. Besides, owing to the fast economic development after the open-up and reform, the urbanization process is speeding up as well as the inadequate and unreasonable plans. The contradiction of the water supplies and demands becomes serious in some cities.
Third, the price formation of the water is unreasonable. The water price formation lacks of the market basis, making partial water supply enterprises difficult to get out of the losses.
Fourth, the water sources are heavily polluted.
Fifth, the water disposal technologies are backward.
There is not very close relationship between Chinese urban water supply industry and the general development of the national economy, which will not be up and down greatly with the fluctuation of the national economy. To open up the market at maximum is helpful to improve the enterprise benefits and the service level. The special characteristics of Chinese urban water supply industry determine its high sensitivity to the variations of the government policies. What are mentioned above provides clear recognition of the competition patterns in Chinese urban water supply industry. The various elements intensify the competition among the water supply enterprises, which is believed to continue with the further development of Chinese economy.
In recent years, with the fast development of Chinese economy and the speed-up of the urbanization, there are huge business opportunities in the urban water supply industry and the mass foreign fund investments activate Chinese water market. The foreign enterprises enter into Chinese market at high prices, which mainly aim at the all-round service perspectives of Chinese water supply industry in the future. The international water giants have mature water treatment technologies and operation management experiences. The technical spill-over effects will also benefit Chinese local enterprises. However, in the reform of the water supply industry, there is less space left for Chinese enterprises.
At present, Chinese drinking water sources are polluted day by day. The inorganic substances, the organic substances and the micro substances threaten to people’s health. Meanwhile, with the enhancement of the living conditions, people have high requirements for the water quality and hope to drink more safe and hygienic water. Facing the present problems, developing new water purification technologies will become the most urgent matter, such as the application of the coagulant and coagulant aid technologies, the application of the biological pre-treatment technologies, the adoption of the new technologies, the intensification of the ordinary treatment, the deepness of the treatment technologies, the new disposal technologies, the new sterilization methods and the film treatment technologies.
The regional distributions of Chinese urban water supply industry have close relationship with the urban development. On the whole, Chinese urban water supply industry is mainly located in the places in the high urbanization level, such as Shandong, Guangdong and Zhejiang etc. second, Chinese urban water supply industry centers in the comparative populous regions, such as Shandong, Sichuan, Beijing and Shanghai etc.
Since the beginning of the 1990s, Chinese urban water supply industry has stepped with the open-up pace outwards. For decades of years, the national economy has developed fast and successively; the urbanization level is enhanced; the price of the water is straightened out; the policy systems are gradually perfected; the market mechanism is introduced and Chinese urban water supply market has become the most attentive market.
Finally, the issuance of a series of policies showed that Chinese government is propelling the marketization process of the urban water supply industry and enhance the profitability through a series of policies.
Because the urban water supply projects are characterized as public welfare, which is restrained from developing by the laws and policies. Although Chinese government has fixed the strategic goals of the marketization of the urban water supply industry, the urban water supply industry lacks systematically research on the marketization direction and the policy systems of the urban water supply is not perfect, leading to the government to probe when making decisions and the long term investments face huge policy ventures.
More information can be obtained in this report:
- Development Situation of Chinese Urban Water Supply Industry
- Problems in Chinese Urban Water Supply Industry
- Policy Environment for the Development of Chinese Urban Water Supply Industry
- Factors affecting the Development of Chinese Urban Water Supply Industry
- Investment Opportunities of Chinese Urban Water Supply Industry
- Prediction on the Development Perspectives of Chinese Urban Water Supply Industry
1 ANALYSIS AND PREDICTION ON THE SUPPLIES AND DEMANDS OF CHINESE URBAN WATER SUPPLY INDUSTRY
1.1 Position Variations of Chinese Urban Water Supply Industry in the National Economy
1.1.1 Proportion Variations of the Total Output Values in the National GDP
1.1.2 Proportion Variations of the Investment Amounts in the Total National Investment Amounts
1.2 Analysis and Prediction on the Supplies of Chinese Urban Water Supply Industry
1.2.1 Total Supply Volumes and Growth Speed
1.2.2 Supply Structures
1.2.3 Situations
1.2.4 Prediction on the Supplies, 2009-2010
1.3 Analysis and Prediction on the Demands of Chinese Urban Water Supply Industry
1.3.1 Total Demand Volumes and Growth Speed
1.3.2 Variations of the Demand Structures
1.3.3 Prediction on the Demands, 2009-2010
1.4 Analysis on the Supply & Demand Balances and Prices of Chinese Urban Water Supply Industry
1.4.1 Analysis and Prediction on the Supply & Demand Balances
1.4.2 Analysis and Prediction on the Price Variations
2 ANALYSES AND PREDICTION ON THE SCALES AND BENEFITS OF CHINESE URBAN WATER SUPPLY INDUSTRY
2.1 Analysis and Prediction on the Scales of Chinese Urban Water Supply Industry
2.1.1 Variations of the Asset Scales
2.1.2 Variations of the Revenues and Profits
2.2 Analysis and Prediction on the Benefits of Chinese Urban Water Supply Industry
2.2.1 Analysis on the Benefits
2.2.2 Prediction on the Benefits
3 ANALYSES AND PREDICTION ON THE COMPETITIONS OF CHINESE URBAN WATER SUPPLY INDUSTRY
3.1 Analysis and Prediction on the Competition Characteristics of Chinese Urban Water Supply Industry
3.1.1 Marketization Process
3.1.2 Policy Variation propelling the Competition
3.2 Analysis on the Mergers and Acquisitions of Chinese Urban Water Supply Industry
3.2.1 Analysis on the Present Situations of the Mergers and Acquisition
3.2.2 Analysis on the Merger and Acquisition Trends
3.3 Analysis and Prediction on the Technical Development of Chinese Urban Water Supply Industry
3.3.1 Ordinary Water Treatment Technologies
3.3.2 Applications of the New Water Treatment Technologies
4 REGIONAL ANALYSES ON CHINESE URBAN WATER SUPPLY INDUSTRY
4.1 Analysis and Prediction on the General Regional Distributions of Chinese Urban Water Supply Industry
4.1.1 Analysis and Prediction on the Regional Distribution Characteristics
4.1.2 Analysis and Prediction on the Regional Distributions of the Scale Indicators
4.1.3 Analysis and Prediction on the Regional Distributions of the Benefit Indicators
4.2 Analysis and Prediction on the Development of the Water Supply Industry in Guangdong
4.2.1 Position in Chinese Urban Water Supply Industry and Characteristics
4.2.2 Analysis on the Operations in Guangdong
4.2.3 Prediction on the Development Trends
4.3 Analysis and Prediction on the Development of the Water Supply Industry in Jiangsu
4.3.1 Position in Chinese Urban Water Supply Industry and Characteristics
4.3.2 Analysis on the Operations in Jiangsu
4.3.3 Prediction on the Development Trends
4.4 Analysis and Prediction on the Development of the Water Supply Industry in Zhejiang
4.4.1 Position and Characteristics in Chinese Urban Water Supply Industry
4.4.2 Analysis on the Operations in Zhejiang
4.4.3 Prediction on the Development Trends
4.5 Analysis and Prediction on the Development of the Water Supply Industry in Shanghai
4.5.1 Position and Characteristics in Chinese Urban Water Supply Industry
4.5.2 Analysis on the Operations in Shanghai
4.5.3 Prediction on the Development Trends
A. Variations of the Water Supply Policies
B. Open-up of the Market and the Entry of the Foreign Capitals
5 ANALYSES ON THE ENTERPRISES OF CHINESE URBAN WATER SUPPLY INDUSTRY
5.1 Analysis on the Characteristics of the Enterprises in Chinese Urban Water Supply Industry
5.1.1 General Characteristics
A. Poor Economic Benefits
B. Low Production Technologies
C. Small Scale and Numerous Quantities
5.1.2 Analysis on the Scale Characteristics
A. Small Enterprises Occupying the Absolute Proportion and the Enterprise Assets in Small Scale
B. Huge Development Space for the Small Enterprises
C. Serious Losses in the Whole Industry
D. Medium and Small Enterprises at Fast Development and Benefit Speed and Strong Profitability
5.1.3 Analysis on the Characteristics of the Corporate Ownership
A. Most Urban Water Supply Enterprises being the State-owned Enterprises
B. Joint Development of Various Corporate Ownership
C. State-owned Enterprises in the Largest Losses
D. Fast Development of the Private Enterprises
5.2 Analysis and Comparisons of the Listed Companies in Chinese Urban Water Supply Industry
5.2.1 General Ranks
5.2.2 Profitability
5.2.3 Operation Capacity
5.2.4 Credit Capacity
5.2.5 Development Capacity
5.3 Beijing Capital Co., Ltd
5.3.1 Company Profile
5.3.2 Position
5.3.3 Technologies and Research Level
5.3.4 Operations
5.3.5 Development Plans and Prediction on the Perspectives
5.4 Shanghai Chengtou Holding Co., Ltd
5.4.1 Company Profile
5.4.2 Position
5.4.3 Operations
5.4.4 Development Plans and Perspectives
5.4.5 Major Development Events and Enlightenment
6 ANALYSES ON THE DEVELOPMENT VENTURES OF CHINESE URBAN WATER SUPPLY INDUSTRY
6.1 Analysis on the Economic Environment Ventures and Tips
6.1.1 The Enhancement of the Urbanization Level Raising Requirements for the Investment and Constructions in the Water Supply Industry
6.1.2 The Reform of the Supply Water Prices Bringing Huge Business Opportunities
6.2 Analysis on the Policy Ventures and Tips
6.2.1 Analysis on the Ventures of the Price Enhancement of the Public Affaires and Tips
6.2.2 Analysis on the Taxation Ventures and Tips
6.2.3 Analysis on the Marketization Ventures and Tips
6.2.4 Analysis on the Ventures and Tips after the Issuance of Catalogue for the Guidance of Foreign Investment Industries
6.2.5 Implementation of the Sanitary Standards for Drinking Water
6.3 Analysis on the Market Ventures and Tips of Chinese Urban Water Supply Industry
6.3.1 Tips for the Supply and Demand Ventures
6.3.2 Price Ventures
6.3.3 Analysis on the Competition Ventures and Tips
7 ANALYSES ON THE INVESTMENT OPPORTUNITIES OF CHINESE URBAN WATER SUPPLY INDUSTRY
7.1 Analysis on the General Investment Opportunities of Chinese Urban Water Supply Industry
7.2 Analysis on the Regional Investment Opportunities of Chinese Urban Water Supply Industry
7.3 Recommendations for the Development and Investments in Chinese Urban Water Supply Industry
Chart Comparison Table of the Total National Fixed Asset Investments and the Fixed Asset Investments in the Urban Water Supply Industry, 2003-2008
Chart Statistical Table of the Number of the Water Consumption People and the Popularizing Rate of the Water Consumption, 1997-2008
Chart Number of the Populations in Chinese Urban Areas
Chart Water Supply Situation in Guangdong, 2008
Chart Operations of the Urban Water Supply Industry in Shanghai
Chart Operations of Beijing Capital Co., Ltd, 2008
Chart Statistics of the Total Water Supply Volumes in Chinese Urban Areas
Chart Water Supply Volumes for Living in Chinese Urban Areas, 1999-2008
Chart Water Consumption Volumes for the Production in Chinese Urban Areas, 1999-2008
