China's Ministry of Metallurgical Industry is examining a possible increase in its stake in Dah Bang (Holdings) to boost its presence in Hong Kong, a source says.
News comes amid a spate of purchases of listed firms by mainland-controlled companies in the run-up to the handover.
Details surrounding the level of stake the ministry intends to own in the printing machinery and steel trader are unclear.
The ministry holds about 9 per cent of Dah Bang through its wholly owned China Iron and Steel Industry and Trade Group Corp.
It also controls the four members of the Shougang group of companies, which are listed in Hong Kong.
The ministry was keen to become a strategic partner with Dah Bang, the source said.
The possible stake increase would further cement their ties and trigger more business co-operation, he said.
