Tag: water scarcity

No water, no power: is there enough water to fuel China’s power expansion?

(October 16, 2012) A new report by Hong Kong and Shanghai Banking Corporation Limited (HSBC) warns that water shortages in China could undermine power production by water-intensive thermal generators and hydro dams, putting economic growth at risk, especially in the metals and mining, utilities, and manufacturing sectors. Allocating water resources by decree in China’s planned economy is unlikely to work, predicts HSBC’s strategist Wai-Shin Chan. Investors should beware and attempt to estimate the effect of looming shortages on the life of their assets: without water security, investors could be left stranded.