China Everbright International's losses in the six months to June 30 have narrowed to HK$1.77 million, helped by disposal of shares in ailing HK Construction. In the year-earlier period, the investment holding company's losses amounted to HK$26.04 million. 'To align with the group's intention to restructure and streamline its existing business, the group decided to reduce its investment in HK Construction,' chief executive Chen Xiaoping said. China Everbright sold a 22.45 per cent stake, or 114 million shares, in June to Shanghai Construction for HK$189.24 million. The company sold another three million shares of its majority holding in HK Construction to Vickers Ballas Hong Kong for HK$3.57 million that same month. Listed HK Construction has incurred losses since 1998. It reported a loss of HK$95.2 million for the six months to June 30. China Everbright was able to write back a provision of HK$161.13 million into its interim results this year because of the transactions. The company, controlled by the State Council, still holds a 10 per cent interest in HK Construction for long-term investment purposes. China Everbright's shares closed at 27 HK cents yesterday, down 3.57 per cent.