China National Building Material Group Corp (CNBM) plans to spin off its machinery equipment making unit, Northern Heavy Industry, for a separate listing in Hong Kong.  CNBM president Song Zhiping said he hoped the planned listing for Shenyang-based Northern Heavy Industry could be finalised within two to three years. 
 
The group listed its cement-making unit, China National Building Material Co, on the Hong Kong bourse in March, raising HK$2.1bn from the deal. 
 
Northern Heavy Industry was eager to seek foreign strategic partners as a way to help it float its shares in Hong Kong, the source said. 
 
"Private equity funds always eye stakes in different Chinese corporates. The most recent example is Morgan Stanley’s interest in buying Dalian-based machinery maker DHI-DCW Group," he said. "Machinery makers are probably the next targets for them." 
 
Meanwhile, the firm’s Shenzhen-listed unit, Beijing New Building Material, has completed its reform to convert all its state-owned shares to tradable ones, according to a filing with the Hong Kong stock exchange yesterday.  However, analysts said it was unlikely that A-share company Beijing New Building Material would seek a Hong Kong listing due to the valuation gap between the two markets. 
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