Finansa Plc hopes to increase its overseas asset portfolio by 50 percent over the next three years through launching services in China in 2008 and increasing its existing investment in Vietnam.

Managing director Vorasit Pokachaiyapat said the firm was considering a potential one-billion-baht (US$32 million) investment in the Chinese financial sector.

"We have already finished feasibility studies, and are negotiating on the price and business structure. We hope to close a deal within three to six months," he said.

Vorasit declined to identify potential partners for the agreement, saying only that the business would be located in Beijing. "The Chinese market has plenty of room to grow. There are more than 90 securities brokers and many asset management firms."

"But it's not easy to enter the local business without joining up with a local partner, as the Chinese government still controls financial investment in the financial sector."

Finansa has already set up a company in China's Hong Kong and mainland respectively, with capital of US$1 million each in anticipation of new joint ventures with Chinese firms.

Vorasit said Chinese securities regulators were likely to encourage consolidation in the sector, given problems of mismanagement and service quality with some operators.

But the Chinese securities sector has continued to grow strongly, with the number of trading accounts now at 100 million, or double that of last year.

"We expect to break even on our investment within five years for our venture in China," Vorasit added.