THE China Merchants investment fund specialising in mainland projects will cash in on the rising yuan, according to fund chairman Jiang Bo.
He said a stronger yuan was good for business, although it increased costs initially.
China Merchants China Direct Investments, with an asset value of US$100 million, is a closed-ended fund incorporated in Hong Kong and floated in 1993.
About 57 per cent of the fund was invested in mainly long-term investments almost two years after the flotation in a process which Mr Jiang admitted was slow.
'But we have to be very careful about what to invest, and so far we're happy with all our 10 projects, unlisted companies, which are going smoothly,' Mr Jiang said.
Five of the projects, ranging from banking, transportation and electronics to real estate, had brought in revenue for 1994.
'The five other projects are going to be profitable too,' Mr Jiang said.