Document summary
This index aims to provide exposure to China’s water sector. Stocks are considered for inclusion based on sector exposure rather than stock-specific fundamental views. With the world’s biggest population and one of its fastest-growing economies, demands for water in China are intense. With per capita water resource at one-quarter of the world’s average, water resources are scarce and pollution increasing. The Chinese government has launched a number of initiatives to reform the severely under-resourced water sector. Companies that stand to benefit from this deregulation process present an interesting investment opportunity.