BEIJING -- A yacht club, claimed as Beijing's first and comparable to the world's best examples of such centers, is to be established on a major waterway running through the city's downtown, it has been agreed.

Luxury yachts will shuttle on the 10-km Kunyu River, which runs southward from the Summer Palace into Beijing's city center, according to a contract signed on Sunday between the Beijing Jing Cheng River Basin Tourism Development Inc. and the Beijing Jing Cheng Long Mai Yacht Club Inc.

The two companies will jointly develop the water-bound sightseeing project to cater for business receptions, recreation and cultural activities on a river that dates back to ancient times.

"The club will be operated based on yacht management on the Seine, Rhine and other famous rivers around the world," said Ding Hua, board chairman of the Beijing Jing Cheng Long Mai Yacht Club Inc.

Ding said the project, to be run on a membership basis, will also offer yacht leasing, modern office space, and family outings.