Greenland Holding Group, a State-owned developer, is setting up a metro investment and development company in Shanghai to tap the growing opportunities in China's infrastructure sector, a top company official said.

The company along with Shanghai Shentong Metro Group Co Ltd, Shanghai Construction Group and other companies are looking to get a slice of the huge subway construction opportunities across China.

"The move shows that Greenland is pursuing diversification opportunities in related industries outside of its core property business," said Zhang Yuliang, president of the Shanghai-based Greenland Holdings.

Earlier this month, the developer reported operating income of 172.7 billion yuan ($27.9 billion) for the first six months of the year, a 20 percent increase over the corresponding period last year, according to data provided by eastmoney, an investment information website.

Zhang said the company is aiming for income of around 400 billion yuan by the end of this year. He said the diversification will create a new growth engine for the group and also mitigate some of the risks arising from property investment.

Greenland said that the subway investment will not only focus on urban rail engineering and building but also highlight developing surrounding regional functions, such as developing urban complexes under the "build, operate and transfer" model.

"We will undertake investing, designing, construction and also equipment operation of subways under the supervision of the government. After the completion of projects, the government will assume the related rights," the company said, adding that it is currently exploring the various options and will most likely make an investment by the end of the year.

Zhang said that the company's strong financial performance is providing a solid platform for its upgrading.

At the same time, the company is also seeking a backdoor listing on the Shanghai Stock Exchange through the purchase of Jinfeng Investment Co Ltd.

The parent of Hong Kong-listed Greenland Hong Kong Holdings went public in 2012.

Zhang Dawei, director of market research at the Beijing-based Centaline Property Agency Ltd, a property consultancy, said that like Greenland, many other developers also want to tap into the metro sector. "However, Greenland is backed by the government, and hence its options and the way forward are much more clearer," he said.

"Moving into subway construction is not a business transition, but more of a business expansion," said Zhang from Centaline.

Greenland had earlier indicated that its business moves were being driven by the government's plea for more social capital in infrastructure.

Premier Li Keqiang said at a State Council executive meeting in April that great potential still exists for investment, as infrastructure in many fields across the country is still outdated. However, China should channel private capital into more areas, optimize investment structures and further promote the diversification of investing entities, the premier said.

Greenland has also been trying to diversify its overseas business to balance its development. The company said it aims to double its overseas sales to 40 billion yuan in 2015 from this year.

Earlier this year, Greenland Group said it aims to achieve overseas sales of 20 billion yuan in 2014, including projects in the United Kingdom, the United States, Canada, Thailand and Malaysia.

The Shanghai-based company and Australia's Crown Resorts Ltd said they will jointly bid for the Queen's Wharf project to develop a luxury integrated resort in Auckland, New Zealand, according to Reuters.

Hu Yuanyuan contributed to this story.

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