Shenzhen Airport Co.Ltd. said it had invited Hong Kong's Airport Authority to become its strategic investor as part of a restructuring effort spearheaded by the Shenzhen government.

The city government in the southern boomtown said last week it wanted to reduce government holdings in 26 companies this year -- some of which would be declared bankrupt -- to boost competitiveness.

"In line with the restructuring plans of Shenzhen's state-owned companies, our company plans to tap the Hong Kong Airport Authority as our strategic investor to help reduce State holdings," Shenzhen Airport said in a statement on Thursday.

"Talks are going on but the two sides have not signed any letter of intent or come to any agreements," it said in the statement published in the official Securities Times but gave no details.

Other companies set to be restructured include Hong Kong-listed Shenzhen Expressway, mainland-traded Shenzhen Changcheng, Shenzhen Tonge, Shenzhen Yantian Harbor and Shenzhen Zhenye.

Port operator Yantian Harbor said it was making preparations to reduce government-owned stakes but had not initiated talks with anyone.

Property developer Shenzhen Zhenye did not make any mention of share divestments or restructuring in a statement published Thursday but warned investors of risks as it had forecast a loss for 2003.

Trading in shares of the three companies was suspended for one hour after the statements were issued and resumed at 10:30 Thursday.

(Shenzhen Daily February 13, 2004)