GUANGDONG Enterprise, the provincial government's commercial arm in Hong Kong, plans to strengthen its key divisions with a view to spinning them off individually.
Guangdong Enterprise has already listed two of its subsidiaries - Guangdong Investment and Guangnan Holdings on the Hong Kong stock exchange.
Chairman He Keqin said the development strategy of the group was to turn its diverse sectors into strong individual businesses with sound production practices, management, expansion potential and healthy profits.
Key divisions within the group included the brewing and malting industry, hotels and tourism, timber and furniture, leather manufacturing and trading, the retail sector and infrastructure.
Mr He did not rule out the possibility of listing one or more of these on the Hong Kong exchange, but declined to give a timetable.
'We have made no decision on the fate of these businesses, whether they are injected into existing listed arms or listed separately. We have to wait for the best opportunities when these sectors mature.' He cited Guangnan Holdings as an example. The fresh foodstuffs exporter was a subsidiary of the group's first listed arm, Guangdong Investment, before being listed separately last year.
The market capitalisation of Guangdong Investment and Guangnan Holdings was $10.6 billion and $2.1 billion.
