GUANGZHOU Investment, the Hong Kong-listed arm of the Guangzhou municipal government, will this week announce its first investment outside its traditional stamping ground of Hong Kong, Macau and China with the purchase of a stake in a building in Singapore. Sources close to the company said it would spend about $200 million for the naming rights of a Singapore skyscraper when it announces its interim results on Wednesday. 'It is the goal of the Guangzhou municipal government to increase its profile with Cantonese-speaking overseas Chinese and it sees having its name up in lights in Singapore as a good way of doing this,' said a property analyst. He said the company would also be announcing a commercial property development in southern China. A China analyst at a US house said: 'The double property announcement at the interims on Wednesday will mark a shift in emphasis for Guangzhou Investment back to property investment and away from its previous policy of diversification.' The move has not gone down well with analysts, many of whom recommended the stock to clients as a burgeoning Chinese conglomerate rather than a China property play. Guangzhou Investment was originally set up as the listed property investment arm of the province's municipal government and developed a considerable portfolio of residential and commercial projects in the 'greater Hong Kong' area of Guangzhou, Hong Kong and Macau. It established strong working relationships with major Hong Kong property counters such as Cheung Kong, Sun Hung Kai Properties and New World Development. Cheung Kong has a six per cent stake in the company. Four months after it listed on the Hong Kong bourse, it spread its wings with the purchase of a 51 per cent stake in Zhujiang Cement Plant for $398 million, a 51 per cent stake in the Guangzhou Cement Plant for $200 million and a 51 per cent in Guangzhou Paper for $233 million. The company's non-property industrial projects were forecast to account for 35 per cent of earnings this year, 39 per cent in 1995 and 44 per cent in 1996, leading analysts to conclude the company was intent on becoming a diversified conglomerate. 'Now Guangzhou Investment appears to be going back to the original intentions of the parent company of being a property developer, which I think is negative for the company,' said one analyst. Another analyst said the move to concentrate on property development would fuel speculation that Guangzhou Investment would soon be seeking a separate listing for its industrial concerns on the Hong Kong market. Analysts were generally downbeat about Wednesday's interim results announcement. They said pressure on cement prices as well as a slowing property market would combine to dampen Guangzhou Investment's achievements. 'Dumping of cement in Guangzhou by other provinces has caused the price of cement to fall from about 550 yuan (HK$498) to about 450 yuan per tonne. In addition, heavy paper imports from Eastern European countries have cut into margins on paper manufacturing,' said a China analyst. The Estimate Directory gives a consensus forecast for full-year 1994 results of $422 million for Guangzhou Investments. It reported a profit of $304 million for the year ending December 31, 1993.