SOME of Hongkong's China play firms are planning to spin off their mainland operations into independent subsidiaries with separate listings on the local exchange. Two firms considering separate listings for their China businesses are Hopewell and Henderson Land - a move welcomed by analysts. They see it as a means to spread the risks and burdens evenly so as to benefit both shareholders and the companies. Mr Lawrence Ang, associate director of SBCI Securities, feels that, because China concept shares have been well-received by investors, spinning off these businesses to raise funds for development is a reasonable move. Mr Ang said that these companies had committed big sums for their initial investments in these projects, but, if they were to spin off these operations, more shareholders would be willing to share the burden. ''Some investors are willing to invest in high-risk, high-return stocks, but they may have had a different view on China concept shares. Spinning off China businesses may, therefore, fulfil the different demands of various investors,'' said Mr Ang. Mr Adrian Ngan, associate director of Vickers Ballas said: ''An independent financial position can be created after a spin-off. As such, funding could be easier, especially for developers in China who need a large amount of capital. ''These new companies will have their own value because of the spin-off.'' However, parent companies have to be careful in spinning off their China operations into separate subsidiaries so as not to seriously affect their own profitable growth curves. Standard Chartered Securities research director Mr Edward Chan warned that if retail companies spun off their China businesses, they might face the problem of having to guarantee the growth of their local and overseas markets in some other way. . ''It is not worth their while to spin off the subsidiaries if after several years the parent companies suffer stagnation,'' Mr Chan said. While New World has repeatedly stressed that it had no intention of spinning off its China businesses, analysts said the company possessed the best credentials in its mainland investment portfolio to make such a spin off viable. ''New World is involved in many different projects in China, including infrastructure, property, hotel and highway. A diversified portfolio of China investments would be attractive to investors,'' said Mr Chan. In giving the reasons for not wanting to spin off its China operations, Mr So Ngok, assistant general manager of New World Development (China) said: ''Unlike other companies, New World doesn't need cash to fund its China investments.'' However, Mr Ang suggested that it was justified for some companies to spin off their China projects to create an independent vehicle - as Henderson Land Development did when it confirmed that it was considering a separate listing for its mainland activities. Mr Chan said that, because property development in China was a high risk business, different investors might have differing views on it. However, by spinning off the China operations, investors willing to bear more risks could subscribe shares in the newunit. Conservative investors, meanwhile, could keep their investments in the parent company. Henderson Land has emphasised that it is investigating the possibility of a separate listing for certain property-related businesses in China and Hongkong - but no definitive proposals have yet been made. Market speculations suggest that there are two possible proposals the company is considering. One is the spinning-off of all Henderson's China operations, while the other is the swapping of assets between Henderson Land and its subsidiary, Henderson Investment. This would allow it to inject the mainland projects into the latter and no new company would be created as a result. According to Sun Hung Kai Securities, Henderson Land has a total of 10 confirmed projects in China and a 25 per cent stake in a Guangxi power plant. Total investment amounts to more than $6 billion over the next five years. Meanwhile, Hopewell Holdings told the Stock Exchange of Hongkong late last month that they might seek a separate listing for its electric power generation operations in China and the Philippines. Mr Chan said that Hopewell would soon see returns from its investments in China, perhaps, in September this year, as per the company's schedule. ''The Shajao B power plant is making good profits for the company,'' said Mr Chan. Speculation has it that Hopewell will set up a new holding company named Consolidated Electric Power of Asia to raise about $8 billion. Hopewell may inject nine electric operations into the new company. These could be Shaojao B and C power plant, Navotas and Pabilao power plants in the Philippines and about four to five plants in China.