Two companies have been established and registered in Sansha, China's newest city, and authorities are expecting more investors and businesses to follow, according to media reports.

Hainan Sansha Construction and Engineering was established on Aug 23. Sansha Hainan Airlines Tourism Investment was founded on Sept 6.

Both were registered with Hainan provice's industrial and commercial administration, which will review and approve applications for businesses until the city sets up its commerce authority, Hainan Daily reported on Wednesday.

Sansha was established in late July to administer more than 200 islets, sandbanks and reefs in the Xisha, Zhongsha and Nansha islands, and 2 million square kilometers of surrounding waters.

"Since the State Council approved the establishment of Sansha, the city has been attracting attention from a huge number of investors who have submitted inquiries and applications to start companies," Wen Zheng, an official with the provincial industrial and commercial administration, told Xinhua News Agency on Tuesday.

He said the authority will assist investors by facilitating the application and review process and opening special channels for the applicants.

Many companies involved in tourism and fishing have expressed interest in investing in Sansha, Wen added.

Officials with the administration said it is still deliberating the registration rules for small businesses because of the city's small land area, companies registered there will be allowed to operate in other places.

Hainan Sansha Construction and Engineering and Sansha Hainan Airlines Tourism Investment will operate mainly in Haikou, the provincial capital.

In addition to efforts to attract investors, Sansha is also busy constructing infrastructure, including a sewage treatment plant and pipe network in Yongxing Island, the government seat of Sansha.

The utilities are expected to be put into use within a year, and the plant will be capable of treating 1,800 metric tons of wastewater a year, according to the city government.

Yongxing, the largest of the Xisha Islands, has about 1,000 residents.

Moreover, a waste-transfer station will be in place in the near future to sort and compress as much as 20 tons of trash collected from the islands. The waste will then be shipped to Hainan Island for further disposal.

The city also plans to build two ships to improve transport and commuting among the islets and reefs.

Contact the writers at [email protected] and [email protected]