Universal Studios has confirmed it has signed a memorandum of understanding with a mainland travel enterprise to explore the feasibility of building a theme park in Beijing. However, the Hollywood entertainment group said there was no commitment between the two parties for the plan to go ahead. The non-binding agreement with Beijing Tourism Group was part of the group's 'on-going valuation' of investment possibilities in the capital city of China, said Jim Yeager, the Los Angeles-based senior vice-president of Universal Parks and Resorts. 'We have been undertaking a feasibility study in the past seven to eight months. We are still doing that,' Mr Yeager said. On Thursday, Duan Qiang, chairman of Beijing Tourism Group - one of the mainland's largest travel enterprises - said in Hong Kong that the two parties had signed the memorandum of understanding aimed at building a US$900 million theme park on a 300-hectare site in Beijing. They were seeking the central government's approval for the development, Mr Duan said. Mr Yeager said the memorandum outlined the discussion framework of the proposed project if the two parties went ahead with construction of the theme park. He said China was an important market and therefore the group was undertaking the study to explore the feasibility of such an investment. The study would be completed early next year, he said. The United States entertainment group - part of troubled French media and utility giant Vivendi Universal - had earlier indicated that China was high on its list of planned parks for Asia. Shanghai also was named as a possible location. Previous news reports have said Shanghai and Shenzhen were in talks with Universal to build theme parks. Hong Kong tourism groups had also urged the government to ask Universal Studios to build a park in the territory. Mr Yeager said the study being conducted would only focus on Beijing and Shanghai. However, Universal Studios has not signed any memorandum of understanding with the Shanghai municipal government or enterprises for a possible theme park development, he said.