Benny Hu, president of Taiwan venture capital giant China Development Corp, said a preparatory committee for the Southeast Asia Investment Company had decided to increase the capital to T$30 billion from T$20 billion.

``Increasing the capital before the company is actually set up will save us some future trouble, but does not mean we are obliged to raise all the money at once,'' Hu told reporters.

Any changes in the company's capitalisation would require complicated procedures, Hu explained at a news conference.``We have set June 19 as the deadline for the collection of initial payments,'' Hu said. ``We hope to raise some T$10 billion in the first stage and we can start operations immediately.''

China Development is at the forefront of a government-inspired drive in Taiwan to help the crisis-hit region throughprivate investments and possible state aid.

Hu declined to give an exact date for the opening, saying government approval was still pending.

China Development has said the private fund would invest 70 per cent of its money in listed stocks in Southeast Asia and 30 per cent would go to unlisted companies.

China Development has announced several investments in the region. These include taking a controlling stake in Bangkok First Investment and Trust Plc, a deal worth less than US$20 million, and forming an investment fund with Malaysia's Rashid Hussain Bhd to focus on high-technology ventures.``China Development hopes to take advantage of Southeast Asia's currency crisis to establish many bases overseas,'' Hu said.

``This is a great opportunity. I am worried that if we don't take action now it will be too late,'' he added.Taiwan has used ``financial diplomacy'' to defy a diplomatic embargo against it by rival China, which has warned Southeast Asia not to let the wealthy Nationalist-ruled island exploittheir difficulties for political gain.