Summary: In this episode of China Money Podcast, our host Nina Xiang reviews the most important investment news of the week. Listen to the complete interview in the audio podcast, watch a shortened video version, or read an excerpt below. - China recently released its twelfth five-year plan for its water supply systems. The plan indicates that the water supply industry may go into its greatest boom in the next several years. - The plan calls for a total of 410 billion Yuan of investment into urban water supply systems by 2016. That is about $65 billion dollars. Around 130 billion Yuan will be used to upgrade water treatment technologies, and around 270 billion Yuan will be used to build new water factories and water pipes. - China is aiming to provide urban residents with water that largely qualifies the national standards by 2020. According to estimates by Chinese media, possibly around half of China’s water currently fail to match such standards. This means China's need for technological expertise is enormous. - The five-year plan’s more immediate objectives include managing pollutions at water sources, upgrading outdated water supply infrastructure and expanding water supply areas - China may launch new measures on the 15th anniversary of Hong Kong’s return to China on July 1. Potential policy initiatives might include allowing high net worth individuals in the mainland, meaning those with over one million Yuan, to invest in Hong Kong - Other initiatives include the launch of an ETF based on Hong Kong's stock market in the mainland; and conversely, an ETF based on the Chinese stock market in Hong Kong through the RMB QFII program. - Changes are also expected on how much individuals can exchange Hong Kong dollars to RMB. Currently, there is a 20,000 RMB daily conversion limit. It could be scraped to allow individuals to purchase unlimited RMB.
