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China Water in Accord With Xinhuang Government on Supply Venture

China Water Affairs Group Ltd., a municipal water and sewage-treatment provider, and the government of Xinhuang county in central China’s Hunan province formed a venture to try to address water-supply needs.

Xinhuang will contribute its existing water production and supply business to the venture and a 30-year concession while Beijing-based China Water said it will provide cash. Registered capital will total about 30 million yuan ($4.9 million), according to the statement to the Hong Kong stock exchange. China Water will hold a majority stake, it said.

The pact follows one in July in which a China Water unit agreed to establish a venture for water-related investments and construction in Henan and neighboring Chinese provinces.

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