Hong Kong, August 4, 2007 –Morrison & Foerster represented Abax Global Opportunities Fund in connection with its US$33 million (HK$260 million) investment in China Water Industry Group Limited, a Hong Kong listed company, through subscription of convertible bonds.  UBS AG acted as the placing agent.  The investment provides additional capital for China Water Industry to develop and expand its water supply and sewage treatment related business in China.

The Abax Global Opportunities Fund was launched in early July of this year with US$300 million (HK$2.34 billion) in assets under management in one of Asia’s biggest-ever hedge fund launches. The fund has been reported to have investor demand of more than $1 billion for the first year.

The deal was led by partner Hong Kong partner, Marcia Ellis.