China's CCCC Dredging Eyes Hong Kong Expansion

Chinese firm CCCC Dredging, which analysts say is involved with China's island-building work in the South China Sea, has filed an application to list on the Hong Kong stock exchange.

The firm, which is being spun off by state-owned China Communications Construction Company (CCCC) . is looking to raise about $800 million to $1 billion in the fourth quarter, IFR reported citing sources.

The firm operates 199 vessels, including the Tian Jing Hao, the largest of its type in Asia, which IHS Jane's Defence Weekly says has been spotted undertaking dredging work in various parts of the disputed Spratly archipelago since last year, citing ship tracking data and satellite analysis.

Application documents published on the Hong Kong stock exchange website on Thursday made no mention of the firm's activities in the South China Sea except to say, "recent increase in government investments in high-profile and large-scale land reclamation in the distant sea areas of the PRC will also have a direct impact in bolstering land reclamation revenue for 2015 and the near future."

CCCC declined to immediately comment on activities in the South China Sea when contacted by Reuters on Friday. The documents said that CCCC Dredging is the world's largest dredging firm by revenue and dredging capacity.

China stepped up its creation of artificial islands in the region last year, alarming several countries in Asia and drawing criticism from Washington. Recent satellite photographs of the area showed that China has almost finished building a 3,000 metre (9,843 feet) airstrip on one of its artificial islands.

China's Foreign Ministry spokeswoman Hua Chunying told a media briefing last week the land reclamation projects on some islands and reefs in the South China had been completed "in recent days".