New World bullish

New World Development managing director Henry Cheng Kar-shun says the company's strategic investments have made paper profits of hundreds of millions of dollars.

His comments come after a number of big Hong Kong companies have said they will have to make provisions for strategic investments.

Speaking at a public function, Mr Cheng said that the company would not reduce its property portfolio despite a sluggish market.

'We haven't been hit much by the property market slump because we sold most of the mature projects before the market reversed,' he said.

He said the company would still increase its land bank.