Catic International Holdings is believed set to raise its stake in a Hangzhou thermal power plant operator in a bid to narrow its losses.
The red chip has a 31 per cent holding in the company, Hangzhou Sealand Electric Power.
Trading in Catic International's shares on Hong Kong Exchanges and Clearing's main board was suspended yesterday, pending an announcement.
Catic International, formerly Far East Aluminium Holdings, is an SAR-based backdoor listing vehicle of China National Aero-Technology Import and Export Corporation (Catic).
Catic is a state-owned enterprise directly under the Aviation Industries of China. Catic International is trying to narrow operating losses from its curtain wall and aluminium works contracting business.
The company reduced its net loss to about HK$39.77 million in 1999 from HK$145.34 million in 1998.