Plans by red chip Guangdong Investment (GI) to spin off its brewery business should not be affected by red-chip guidelines issued by the State Council last Friday, the company says. Guangdong Investment, listed vehicle of the Guangdong provincial government, says an application to list its 75 per cent owned Shenzhen Kingway Brewery Co is expected to be passed by the listing committee early next month. Guangdong Investment chairman He Keqin said the company would abide by the guidelines and follow required procedures step-by-step. He declined to comment on whether the spin-off would have to be approved by mainland securities regulators under the new guidelines. It is understood the Hong Kong exchange has not asked the company to seek mainland approval. Mr He was asked to comment on the company's relations with authorities in Beijing, which some observers claimed had gained the company certain advantages. '[We] rely on our own efforts,' he said. The guidelines created extra regulatory hurdles for the listing of mainland assets and for the transfer of mainland assets into red chips - Hong Kong-based and listed companies controlled by mainland government agencies. Analysts said the company needed to make some acquisitions to improve lacklustre performances by its existing business.