《未来最具投资价值行业(水公用事业部门)深度报告》(64页).rar Valuations　reflect　growth,　but　not　risks ＆＃1048708；　Medium-term　growth　outlook　is　strong Water　wastage　and　pollution　are　two　major　problems　in　China.　We　believe　the government　will　allow　more　private　companies　to　invest　in　the　water　sector　to　help alleviate　these　problems.　An　increasing　water　tariff　trend　and　the　scope　for efficiency　gains　in　projects　are　the　main　sector　attractions,　in　our　view. ＆＃1048708；　Returns　risk　from　competition　and　regulatory　change We　think　the　evolving　regulatory　regime　reduces　return　predictability.　There　is　risk of　competition　from　both　domestic　and　foreign　companies　for　projects,　resulting　in lower　returns.