Investment bank Kingsway Group plans to raise US$100 million to split into two private equity funds to invest in mainland companies that have potential to list in Hong Kong and in mainland gold mines. Executive director Patrick Sun Ting-wah, who runs the private equity funds business for the group, said it would raise the money from institutional investors. 'We plan to invest in mainland companies which are running well and would be qualified to go public within three years of our investment,' Mr Sun said. 'China's policy keeps changing so quickly, but we do not want to invest in a company and have to wait for more than five years before we can sell it or list it on the stock exchange.' Mr Sun believes the fund will be popular because of mainland companies' current interest in listing on the stock market. 'There is no way to stop the popular trend for mainland initial public offerings. These companies need to raise funds for their development or restructuring while overseas investors are interested in getting into the mainland market,' he said. Mr Sun said the second US$50 million fund would invest in mainland gold mines and other precious metal producers. William Lam Ka-chung, the chief executive of the group, said: 'The weak US dollar provides a good growth potential for the price of gold. This is the right time to launch a precious metal fund.' Mr Lam said the company's investment banking business was involved in preparing five IPOs, each hoping to raise about $200 million.