Earlier this month, the Wenzhou-based China Cruise Company bought the country's first luxury cruiser. But it wasn't just any luxury cruiser. In the style that has made Wenzhou's entrepreneurs so famous, the company went big and bought the world's only six-star, two-hull cruise ship, complete with floating karaoke and a traditional massage. Its owners raised millions of U.S. dollars through a private fund to purchase and refurbish the ship.

Analysts are touting the deal as an example of how reforms in China's financial sector, such as relaxing rules on private funds, can enable relatively new industries to get off the ground.

Wenzhou is known for its flourishing private capital. And Huang Weijian is a typical Wenzhou businessman.

When shrinking external demand and rising costs began to create problems for China's private firms, Huang sniffed out new investment opportunities --- and it led him to cruise tourism.

At his suggestion, a group of Wenzhou businessmen established a fund to set up the China Cruise Company, and complete a multi-million-dollar cruise deal.

Huang said, "The fundraising will be done in two steps. First, we raised 500 million yuan from overseas sources to purchase the vessel. In phase two, we plan to raise funds within the Chinese mainland. This is a typical example of how financial operations can support other industries. "

Huang explained there are a large number of Wenzhou businessmen residing overseas. Now, as the global economy slows, many of them would like to invest back in China.

The investment center Huang and his partners set up could see business boom, as Wenzhou has been selected as a pilot zone for financial reforms.

Huang said, "Over the past year, we've participated or initiated 23 projects, involving 1.7 billion yuan. What we're doing is directing private capital into industries, to generate returns for the real economy. It also contributes to the upgrading and transformation of the city's modern service industry"

Huang is confident that cruise tourism will flourish in China as consumers increasingly look to higher end travel options. They are already looking into the purchase of a second ship.