CMCDI looking to invest capital

PUBLISHED : Wednesday, 26 June, 1996, 12:00am
UPDATED : Wednesday, 26 June, 1996, 12:00am

Close-end fund China Merchants China Direct Investments (CMCDI) will fully invest US$35 million, the remaining capital within its total net asset, in the next year mostly on infrastructure projects.

Managing director Sun Ju said infrastructure investment accounted for 27 per cent of the total net asset value.

'The proportion of infrastructure investments will increase to 40 per cent of our total net asset after a number of negotiating project being concluded in coming year,' he said.

He said CMCDI had signed at least three letters of intent for toll-road projects in China.

The first toll-road is a 30-kilometre segment linking Maoming city and its county Huazhou, part of number 1987 provincial road network of Guangdong.

The second project is for three segments of the 324 National Highway, linking Zhangzhou and Zhaoan cities in Fujian province. The total length is 180km.

The third is an eight-km road to serve Weifang port in Shandong.

Mr Sun refused to disclose the total investment that CMCDI would place in these three projects as negotiations were still underway, but the maximum stake in one project would be 35 per cent.

He said all three roads were grade-one standard.

Last month CMCDI acquired a 16.7 per cent stake in the 35km Loumei section in Guangdong at US$5 million with an expected yield about 19 per cent.

CMCDI was also seeking toll road, bridge and tunnel projects, he said.