ING Beijing Investment, a US$70 million direct investment fund which was listed in May on the Hong Kong stock market as a closed-end fund, is finalising its third joint venture on the mainland. Since the listing, the company has formed two joint ventures, taking up one-seventh of the fund. Executive director Hu Xucheng said the third project would be announced early next year. Beijing Investment and Information Advisory Service Centre, which is under the aegis of the Beijing municipal planning commission, served exclusively as the fund's investment adviser which, Mr Hu said, had become its feeler for investment opportunities in China. Dick Kwan, director of ING Luxfund Management, investment manager of the fund, said not many other China investment funds were represented on the mainland by both investment adviser and manager. The fund's investment strategy focuses on four industries - medical and communications equipment and food-processing and infrastructure-related companies, which involve low-risk and yield high returns. Mr Hu said: 'State or private enterprises matter less in our consideration, especially when there is rapid transformation of company ownership on the mainland. 'Our criteria are that the company has good management and a potential to grow.' The fund looks for projects worth $5 million to $10 million and prefers diversity in its investment portfolio. Its stake in the joint ventures cannot exceed 35 per cent. Mr Kwan said: 'In our case, our team has day-to-day contact with the adviser, which has a team of 20 closely monitoring the joint-venture projects. 'To dig up potentially lucrative projects requires a knowledge of how things are done on the mainland, and for that we rely on the solid base the Internationale Nederlanden Group has built over the years.'