Henderson China Holdings has signed a letter of intent to invest about US$30 million in a mobile phone business in Yangzhou city, Jiangsu province, an official said.
The official said the letter of intent was signed with the Yangzhou municipal government earlier this month.
He said investment in the Yangzhou project would be $30 million in which Henderson would take a 95 per cent stake. The mainland party would provide land and a small amount of capital.
Vice-chairman Peter Li Ka-kit said on Tuesday the firm was in talks with mainland parties on a possible investment in the country's telecommunications sector. He said negotiations would be concluded within a few months.
A reliable source said Henderson hoped to develop a mobile network in Yangzhou and expand it to cover the entire province.
He said negotiations were underway with several cities in the province, but that no decisions had been made apart from the Yangzhou project.