Citic Pacific is considering a rationalisation of its infrastructure portfolio, which could see the scaling back of a number of mainland projects, according to analysts. But Citic Pacific managing director Henry Fan Hung-ling denied the group planned to suspend its $2.8 billion mainland electricity generation portfolio. Instead, the investment would be increased to $3.6 billion, Mr Fan said, according to a Xinhua report in the China Daily . However, one analyst said a water plant in Wuxi, near Shanghai, could be sold as the company focused on projects in which it had a majority interest. The analyst, who had met Citic management, said the company already had deferred its capital expenditure programme in response to the worsening mainland credit crunch. The market estimates Citic's gearing at about 45 per cent. Mr Fan yesterday was reported as saying the group's total debts had declined from $22 billion at the end of 1997 to $19 billion, because of the capital expenditure cuts. Speculation has been growing that Citic will sell its 20 per cent stake in CLP Holdings because the two have failed to identify suitable mainland power projects for investment through a joint venture. Last month, CLP chairman Michael Kadoorie said that if no suitable mainland projects could be identified within a reasonable time, the power company would look to return to shareholders cash generated by the sale of shares to Citic. 'It's not as easy to find opportunities in China as we had hoped,' he said. Citic's investments include a wide range of infrastructure, trading, property, and distribution interests in Hong Kong and the mainland. Its shares finished at $14.00 yesterday, 4.47 per cent higher on the day.