Tianjin Economic-Technological Development Area (Teda), the mainland's most profitable development zone operator, plans to list in Hong Kong, officials say. A project manager yesterday said it hoped to list as an H share next year, but added it had yet to make an application to the China Securities Regulatory Commission. It is understood Credit Lyonnais Securities (Asia) and SocGen-Crosby Securities (HK) have been seeking the underwriting mandate. The 33-square-kilometre development area houses Motorola's largest factory in the mainland and about 40 of the mainland's biggest foreign investors, including Coca-Cola, AST Computers, Honeywell and Nestle. The project manager said the listing proceeds would be earmarked for infrastructure development and the commercialisation of scientific results. He would not say how much would be needed for the projects. He said the flotation would provide the company with an alternative source of funding to its mainland-listed subsidiary, Taifa Co, which listed A shares in Shenzhen in 1996 as the area's domestic flagship company. The area operator, owned by the Tianjin municipal government, is the sister company of red chip Tianjin Development Holdings, the Hong Kong-listed window company of the Tianjin government that listed in December. Tianjin city is one of four municipalities directly under State Council control. Analysts who returned from a visit to the red chip company last week said it was indicated that several Sino-foreign joint ventures in the development area would be available for injection into the company. A Credit Lyonnais Securities (Asia) report said there would be no conflict of interest between the red chip and the planned listing because Teda would be listed as a zone developer. Set up in 1984, Teda had assets worth more than two billion yuan (about HK$1.86 billion) last year, with industrial output growing more than 40 per cent in the past few years. The city aims to make the Tiajin zone its 'hot spot' for foreign investment. The biggest investor in the zone so far is Motorola, which invested US$1.2 billion producing semiconductors, cellular products and pagers. Shi Hongqiang, an official at Motorola China (Tianjin branch)'s communications department, said sales rose to about 22 billion yuan last year from 17.4 billion yuan in 1996.