Guangdong Development Fund, affiliated with the provincial government's commercial arm, Guangdong Enterprises, posted an 85.4 per cent increase in unaudited net profit of US$2.67 million for the six months to June. The closed-end fund, listed on the London Stock Exchange and with a secondary listing in Hong Kong from July this year, was set up by Guangdong Enterprises and First Eastern Investment Group. The net asset value (NAV) per share for the six months was 98.8 cents, about 1.23 per cent over last year, while basic earnings per share increased 84 per cent to 2.76 cents. The board recommended no interim dividend. The fund said the increase in net profit and NAV per share for the first half of this year should fall to 42 per cent and 0.75 per cent respectively after the adjustment of unaccrued income for last year. This was because income from certain projects had not been received in the first half of 1995. By the end of last month, the fund had invested $70.84 million, representing 76 per cent of its total size of $97 million. In the past six months the fund has concentrated on supporting and improving the performance of existing projects and increased investments in two projects. This included increasing its investment in the Huizhou Highway project by $3.2 million to a total of $8 million. Fund chairman He Keqin said negotiations were underway for participation in several high-potential projects. He said the fund would adjust its strategy to cope with changing market conditions and a slow-down in economic growth in Guangdong. 'Guangdong is undergoing an adjustment from years of very rapid growth compared to most Western norms,' he said. 'The current deceleration in growth is a normal phenomenon which is consistent with healthy, long-term economic development.'