CHINA Resources Enterprises (CRE) is considering a convertible bond issue to fund its expansion. Yan Biao, CRE senior property manager, confirmed that a convertible bond issue was being looked at but said this depended on the progress of the company's expansion. He said there was no timetable for a possible issue. It is understood many international institutions including Morgan Stanley and Swiss Bank have approached CRE regarding a bond issue, which would be at least US$100 million. Several China-backed Hong Kong-listed companies such as Guangzhou Investment and Guangdong Investment have issued convertible bonds. China Travel International Investment Hong Kong is to launch an issue next month. Mr Yan said CRE would need about HK$1 billion for its business expansion in the coming year. The company was looking at potential projects in China, and there was a possibility that its parent China Resources (Holdings) would inject other assets into CRE, he said. China Resources Petroleum and Chemicals and Ng Fung Hong, both owned by the parent group, are likely future injections. Mr Yan said Ng Fung Hong, a cereals and food giant, was studying the possibility of going public but it was not known whether the firm would list on its own or through CRE. It is estimated Ng Fung Hong, which supplies Hong Kong with 98 per cent of China-produced pork, recorded a profit of about US$20 million last year. Mr Yan said CRE and its parent group would sign a contract next month to take a 75 per cent stake in a joint venture manufacturer of air-conditioner compressors in Shenyang. That investment would exceed US$10 million. CRE is negotiating for a joint-venture brewery in Shandong and also intends to establish manufacturing ventures for steel, building materials and ceramic sanitary ware. In Hong Kong, Mr Yan expects construction of the Nga Ying Chau property development, in which CRE has a 55 per cent interest, to start by the end of 1995. Yesterday, CRE's 30 per cent owned Logic Office Supplies announced a HK$66 million joint venture with investors from China, Taiwan and Europe to market and manufacture office furniture on the mainland, Hong Kong and Southeast Asia.