Investment company Far East Holdings International wants to increase its investment in a planned aviation joint-venture company in mainland China to 300 million yuan (HK$306.4 million).

Chief executive Duncan Chiu said the deal has not yet been completed as government approval is still pending.

"I hope we can complete the transaction by the end of June," Chiu said.

In September 2006, Far East said it would partner with state-owned China Aviation Supplies Import and Export Group to invest 63.97 million yuan in Beijing Kailan Aviation Technology, with Far East contributing 20.47 million yuan, or 38 percent.

Chiu said there are plans to reorganize Beijing Kailan's business with a view to listing it on the Hong Kong stock exchange in three year's time.

He said Far East was still in discussions over investment in new projects but declined to provide further details.

Chiu said Far East may seek additional capital in the second half but would fund any investment out of internal resources for the time being.

The company had no need to sell down its stake in Chinasoft International, which stood at 19.78 percent at the end of the year.

In general, Chiu reiterated the company's focus on investing in new start-ups, nurturing them and then listing them, preferably in Hong Kong.

Each project would see the involvement of company staff.

"We will not be a passive investor."

However, Chiu added the firm will stay well away from property projects, which will remain the domain of sister company, Far East Consortium International.