Foreign firms find liquid assets in water sector

Shortages of potable water are prompting China to open up to private participation in the sector and providing new profit channels for foreign companies.

Patrick Decker, chief executive officer of Xylem Inc, a global water technology provider, said that the United States-based company has "a very active pipeline of companies in different markets", including China, that are possible acquisition targets.

"We have the financial strength to do acquisitions but we have to make sure they are smart acquisitions, which has long been a priority for us, as it is an enabler for growth in China," said Decker, who's also president of the New York Stock Exchange-listed company.