SHK Hong Kong Industries has expanded the scope of its China business after a partial liquidation of its investment portfolio over the past six months. Chairman Tony Fung said the company was looking into existing infrastructure projects in China in a bid to minimise the risk of timing and cost exposure. The company would provide fresh funding for acquisition of equipment and facilities. It was targeting a 20 per cent investment return on each project, he said. He did not go into detail on projects under negotiation. The company's share price did not reflect its value, and this would be considered in mapping out development strategy, he said. Managing director Peter Fung said the company had sought permission from the the Hong Kong stock exchange to change its objective to include mainland investments in addition to those in the territory. But it was still subject to the listing rules governing investment companies, restricting them to 20 per cent of their asset values for any single project. He estimated SHK Hong Kong Industries had a net asset value of $2.2 billion, half of which was cash raised from the disposals of listed securities in the past half year. He did not rule out sales of the remaining portfolio as long as the price was right. He stressed however that the company would continue to invest heavily in the territory and had enough capital for existing investments. The company's latest sale was the disposal last week of a 13.5 per cent stake in San Miguel Brewery to Cheung Kong (Holdings) and Neptunia, a subsidiary of San Miguel, for a total of $378.6 million. It had earlier hived off its holding of convertible notes of seven listed companies for a separate listing. However, as a result of lukewarm response to the listing, it is trimming its holding in the company to below 35 per cent from 50 per cent. Meanwhile, its stablemate SHK China Industrial Investments is negotiating for two pharmaceutical projects in Zhuhai and Guangzhou, said Tony Fung.