A new investment company to be listed on the Hong Kong stock exchange has its eyes on small and medium-sized enterprises (SMEs) in Shenyang, undeterred by the city's tarnished reputation as home to the scandal-ridden Euro-Asia Agricultural (Holdings). China Northern Enterprises Investment Fund (CNI) would raise $50 million through a private placement this week for investments, enabling it to take advantage of China's high economic growth, executive director Mearns Nimmo said. CNI will be floated this month under Chapter 21, a scarcely used provision which allows investment companies with no track record to list on Hong Kong's main board. Pegasus Fund Managers will be its investment manager. Though CNI will primarily invest in companies listed in Hong Kong, up to 40 per cent of the funds will finance investments in firms planning to list. CNI executive director Peter Yau has served as a financial adviser to the Shenyang City Small and Medium-sized Enterprise Bureau. This link gives CNI an insight in finding quality Shenyang SMEs as strategic investment targets. 'The [SME] bureau in Shenyang is our source of information,' Mr Nimmo said. 'They've lost a lot of face with Euro-Asia. So they recognise that the next Shenyang companies to go public have got to be of better quality.'