China's Nanjing Jincheng Machinery is looking to a Hong Kong listing to help more than double its production of motorcycles to two million units in 2000 as the market faces keener competition. Chairman Chen Liqun said: 'It is state policy to concentrate motorcycle production on 10 or fewer manufacturers. So small players will be squeezed out.' He said Jincheng would produce two million motorcycles in 2000, up from last year's 710,000. The plan, involving an expansion of development, manufacturing, mould-making and distribution capacity, partially had been approved by the state. Mr Chen refused to reveal the expansion cost, saying it would be financed through international financial markets. The group is China's third-largest motorcycle maker with sales last year of 3.9 billion yuan (about HK$3.63 billion) and US$12.2 million in export income. Mr Chen said Jincheng, a subsidiary of Aviation Industries of China (Avic), mainly produced upmarket motorcycles. Its rivals, such as Jialing Industrial, North Jianshe, Jinan Qingqi and Er Chor China Motorcycle, produce between 600,000 and 1.2 million units. China's motorcycle market has experienced significant growth since 1990, when national production was only one million units. The country's total output last year was 10 million units. Avic planning department deputy director Ye Jinfu refused to confirm whether Jincheng's listing had replaced Xian Aircraft Co, selected among China's second batch of overseas listing candidates in 1994, but he said that Xian Aircraft's Hong Kong listing temporarily had been shelved. Meanwhile, Wei Yuzhong, vice-president of the Shenzhen unit of the China Aviation Technology Import and Export Corp (Catic), said the group, among the fourth batch of overseas listing candidates, planned to hive off high-technology operations, mainly electronics and consumer goods, for a Hong Kong listing in July. The Shenzhen unit group has more than 100 subsidiaries, providing room for future asset injections into the listing arm. It planned to raise less than US$200 million in the listing offering.