UDL, one of Hong Kong's largest construction and dredging groups, will link up with China Construction, an arm of China's Ministry of Construction, to develop business opportunities in the mainland and Southeast Asia.
UDL will announce the partnership deal tomorrow. Its shares were suspended on Friday pending the announcement.
The partnership agreement includes a share placement by UDL in an Australian company listed on the Australian stock exchange and controlled by China Construction and which is also listed in Frankfurt and Stuttgart.
Insiders said the deal would be announced tomorrow by UDL chairman Leung Yat-tung.
UDL's aim is to broaden its exposure in international construction and marine markets through strategic shareholdings.
It already has shipbuilding interests in Singapore but the outlook for the ship repair and marine engineering business there remains depressed.
In the mainland, the firm owns Chun Wah Engineering and Heavy Industry in Dongguan and Zhongshan UDL which specialise in structural steel engineering and shipbuilding and repair.