The London-listed Aqua Resources Fund has seen its net asset value per share drop 8.27% in six months to €1.0321 per share after fears over the value of Chinese water stocks hit one of its main investments.

In the six months to 30 June, the water investment scheme managed by FourWinds Capital Management had to deal with a precipitous drop in the value of the China Hydroelectric Corporation (in which Aqua bought an original 26.71% stake for $20 million), as well as the broader effects of the financial crisis on the investment market.

Describing the period as “challenging”, chairman Hasan Askari said in a statement for the fund's unaudited six-month results that it might have to consider a merger or consolidation with other assets or funds – or even reconsider its publicly listed status – if it wanted to keep delivering value to its investors.

But there were some encouraging points in its portfolio, such as the announcement by Bluewater Bio of a major wastewater installation contract in Bahrain.