SHANGHAI International (Hong Kong) will launch a fund to invest in unlisted enterprises in China's electronics sector, says chairman Guan Jinsheng. The company and First Shanghai Investments are the Hong Kong listed vehicles of Shanghai brokerage giant Shanghai International Securities. Speaking at the company's first anniversary yesterday, Mr Guan said it was organising a fund with the Ministry of Electronics. He said the size of the fund had yet to be finalised, but chief executive officer Shirley Chong Sok-un said the fund would raise at least US$100 million and would be launched this year. Mr Guan said this was the first time that the ministry had taken part in setting up a fund to invest in enterprises under its umbrella. He said the fund would invest in the industry by taking strategic minority stakes in enterprises, mirroring the rush of trusts to invest in businesses in the country's key industries. lished last year to invest in transport and aircraft industries. Mr Guan said the fund was waiting for approval from relevant authorities such as the Bank of China. The company hoped to list the fund at a later stage. On corporate development, Mr Guan said priority for this year would be given to strengthen its corporate finance business and trading operations. ''Having acquired the company [formerly known as Ong Holdings] for about a year, it has undergone several big changes in operations and corporate structure,'' he said. Better service was provided and staff and shareholder funds increased, giving the company opportunities to look for representation in the securities market in Southeast Asia, the United States, Europe and Japan. The company was planning to set up offices in New York and London, but details had yet to be finalised. Since its inception, it has been involved in underwriting and participating in new B shares issues on the Shanghai Stock Exchange and H share issues on the Hong Kong Stock Exchange. As the underwriting and trading of B shares represents part of the company's operations, the bearish B share market is likely to hurt income. But Mr Guan said that the company's income growth was satisfactory and the long-term growth of the B share market was promising, despite claims that the introduction of H shares had affected it. He said: ''The H shares market involves only a minority of companies and serves only to supplement China's securities market.'' ''I'm optimistic about China's B share market, and particularly the Shanghai B market, with which I am more familiar,'' he said. ''In the past, B share issuing was restricted to Shanghai and Shenzhen. But it is the government's aim to extend B share issues to the rest of the country,'' he said. Mr Guan said the B shares sector was undergoing a period of adjustment, resulting from the government's macro-economic policies. He said it should not last long, but refused to predict how long.