Cosco Pacific Ltd, Asia's third-largest container-terminal operator, said it may sell shares in China's mainland to help fund its expansion plans, Bloomberg News reported Thursday.

"We hold a very positive and active view on a share sale," Vice President Xu Minjie said in Hong Kong yesterday. The company's net income rose 29 percent to 155 million U.S. dollars in the six months ended on Dec. 31. The figure was derived by subtracting first-half profit from 2006 earnings released yesterday.

Cosco Pacific would follow China life Insurance Co, Bank of China Ltd and other Hong Kong-listed companies in selling shares on the mainland, as the government encourages the mainland's largest companies to list yuan-denominated A shares. The container-terminal operator is seeking funds as it plans to add an average of 20 berths a year until 2010, while also opening oil and bulk-cargo facilities.

"Mainland investors welcome the shares of Hong Kong-listed companies," said Liang Feng, who manages about 40 million dollars at Citic Fund Management Co. "The higher valuations on the mainland market are fueling the listing frenzy," he added.

Container throughput at Cosco Pacific's 16 terminals around the world rose 26 percent to 32.8 million last year, as China mainland's 27 percent rise in exports boosted demand. About 90 percent of world trade moves by sea.