Last year, Amoy on its own undertook the HK$5.5 billion fourth-phase residential development at Kowloon Station.

Mr Chan said the board decided to change Hang Lung's focus because international investors had begun to lose interest in property companies.

It would continue working on existing properties until they were completed.

Executive director Alfred Li Hung-kwan would head a team to explore non-property investment opportunities, Mr Chan said.

Hang Lung wanted to set up a semiconductor plant in the mainland together with companies from the United States and Taiwan, he said.

It would take a leading position in establishing the mainland operation - in about two years, he said.

Another plant was to be established in Taiwan.

To prevent any potential conflict of interest, Mr Chan emphasised Hang Lung was unlikely to buy his family's privately-run high-technology projects.

Morningside Group, the private investment house held by the Chan family and the controlling shareholder of Hang Lung, had accumulated a considerable hi-tech investment portfolio, he said.

'We will try our best to avoid connected transactions,' Mr Chan said.

'In the past 30 years, my family did not get involved in property developments due to the worry of a conflict of interest.' Mr Chan expected Hang Lung's major profit contributions still to come from property sales during the next three years - until other business ventures matured.

The company should realise more than HK$2 billion if all of its developments sold, with the proceeds going into new project investments and to reduce bank borrowing.

Major property projects on hand include a residential development in Ma On Shan.

PROPERTY