Chinese developer Sunshine 100 Real Estate Group has announced its plans to list shares in Hong Kong this year, although it is still monitoring whether the central government will impose further measures to curb the property market, which could affect the overall market, said the company’s President.
The real estate company, which has been planning to go public for years, had employed UBS and Morgan Stanley as underwriters.
According to some sources, the property developer had previously hired Credit Suisse, UBS and Deutsche Bank to underwrite an initial public offering (IPO) that had intended to raise US$1 billion.
The real estate group declined to neither give the size of the offering nor comment about its underwriters.
Yi Xiaodi, Sunshine 100 president, said the company is closely monitoring all the policies implemented by the government, as well as the market condition, which has been unstable over the last few months.
Early this month, China Tian Yuan Mining Ltd, Swire Pacific’s 0019.HK property arm and China Tian Yuan Mining Ltd postponed IPO plans in Hong Kong, as global debt worries dented many investors’ appetites for corporate fundraising.
Some analysts noted that Swire Properties had deterred its plans due to the relatively high pricing, which might weaken investor sentiment.
“We have a very zen attitude about this. We don’t want to be like other companies that want to price at a really high level. We’ll be happy so long as it’s priced reasonably,” said Mr. Yi.
The company focuses its operation on China’s second- and third-tier cities like Wuxi, Shenyang and Liuzhou, where property prices have been more subdued compared to first-tier cities.
Several property developers like Evergrande 3333.HK have cut prices temporarily or delayed project launches, cautious of weak buying sentiment after the Chinese government announced some measures in mid-April to cool down property prices.