THE $46.8 million provision against losses made by an electrical firm in China has rocked China Assets, the investment firm launched last year by some of the leading fund management groups in Hongkong. Mr William Tsui King-fai, managing director of China Assets Management which handles China Assets' investments, yesterday revealed that the company had had to provide for all of its investment in an unnamed company in the electrical and electronic components business. In February the group admitted that it had to make provisions of $13.5 million against losses in the company. Now it has made further provisions of $33.28 million, virtually admitting that it has lost its entire investment made only last July. The founding members of China Assets were China Venturetechno International Co (CVIC), Standard Chartered Bank, Sun Hung Kai & Co, and Nippon Investment and Finance. China Assets Management is a Hongkong company owned 51 per cent by CVIC, and in which Standard Chartered Asia has 20 per cent, and Wardley James Capel 10 per cent. PIHNA Asia, the subsidiary of a Netherlands Antilles registered company also has 10 per cent, and Mr Tsui has nine per cent. In a statement from the company, Mr Tsui said the directors were reviewing their options with their financial and legal advisers to see what course of action they might take over the losses. The mystery group represented around 7.7 per cent of China Assets' net assets before the provisions were made. When China Assets shares were launched in April last year, the company said it would be investing in small to medium-sized enterprises in China, with special emphasis on unlisted companies. Before the announcement, China Assets' shares yesterday gained 15 cents to $6.75.