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Beijing Enterprises Holdings, the investment arm of the city government, said it may sell its tourism concerns to focus on infrastructure business even though the Olympic Games in 2008 will probably offer rosy growth prospects.

The company also plans to spin off its geothermal energy provider, Beijing Eversource Technology, for a Hong Kong listing this year after it raises its stake in the unit to 72 percent from 65percent for 50 million yuan (HK$47.1 million).

``We'd like to define ourselves clearly with major focuses on infrastructure, utilities and brewing so we have [come up with] the idea to unload the tourism business strategically,'' president and vice-chairman Zhang Honghai said.

Mainland firms are boosting their presence in the infrastructure sector on hopes that Beijing will continue to provide support amid the country's expanding economy. Red-chip Guangdong Investment also said recently it will focus on infrastructure and utility businesses.

The infrastructure segment made up about 80 percent of Beijing Enterprises' net profit in the first half of last year. The company earlier indicated it was in talks with the Beijing city government on potential new projects.

``We're going to raise funds to invest in a few utility and infrastructure projects this year,'' Zhang said. He also said the company has 600-700 million yuan in cash.

Financial controller Jimmy Tam said the company was interested in investing in a highway that linked to Beijing's airport. But ``only new projects with returns of at least 8.5 per cent will be considered,'' he said.

The tourism business that Beijing Enterprises plans to sell provides services in famous scenic areas such as Badaling Great Wall and Longqingxia.

Eversource Technology builds geothermal energy systems and related installation services. Its profit in 2003 was HK$49 million.