Xiamen's deep-water port, which has benefited from foreign investment, booming exports and Fujian's growing economic clout, aims to become one of the world's leading ports by 2020.

It also adds to mounting pressure on Hong Kong's own world-class port operations. While Xiamen does not compete directly with the SAR, it underlines China's desire to become the world's leading shipping power and port operator, an ambition many believe will come at Hong Kong's expense.

Xiamen, ideally placed should the recent thaw in relations between Taiwan and the mainland result in detente and a resumption of direct trade, has grand plans of its own. While not as busy as larger mainland ports in Shanghai, Shenzhen and Qingdao, it last year announced plans to invest up to 14 billion yuan (HK$13.2 billion) over the next six years to expand capacity and throughput. A fresh injection of capital via an IPO will help its cause.

Its stated aim of becoming one of the world's top 20 ports by 2010 has also been aided by an injection of foreign capital. Hutchison Port Holdings, controlled by Li Ka-shing, owns several berths in Xiamen, and APM Terminals, the Dutch subsidiary of Danish shipping giant AP Moller-Maersk, last year announced plans to sink three billion yuan into a joint venture to build a three-berth terminal with Xiamen Port Group.

Xiamen's IPO, originally slated for the final quarter of last year, is just one of a swathe of China shipping-related IPOs slated for Hong Kong's stock exchange. COSCO Container Lines, or Coscon, is expected to raise up to US$2 billion in a stock sale now expected in the second half.

China Ocean Shipping recently said it aimed to raise US$1 billion from a share sale.

Analysts said the fundamentals for China-related shipping and port companies remains generally solid, due largely to growing trade between China and the rest of the world.

``As long as trade between the United States and China continues growing at the current levels, I see no reason not to invest in these companies,'' said UOB Kay Hian investment analyst Zhang Xi. ``Xiamen would be a good choice. I don't see any slowdown in their trading activities.''

China's ports handled 60.9 million twenty-foot equivalent units of containers in 2004, according to figures from the Ministry of Communications, up 27 percent year on year.

Xiamen's port grew at a slightly slower rate, handling 2.9 million TEUs last year, a 23.2 percent increase.

Phillip Securities research director Louis Wong said in the short term Xiamen faced competition from other mainland ports, highlighting rivals such as Nansha in Guangzhou and Yantian in Shenzhen.

But he also noted Xiamen's potential, its proximity to Taiwan, and China's willingness to keep its tightly controlled shipping conglomerates free - strategic investments in berths and terminals apart - of foreign capital.

``It's one of the few sectors completely protected,'' Wong said.

``China has a big market, too. Exports are growing fast, and demand for imported goods will be boosted tremendously in the future as income per capita in China increases.''