Shui On Construction and Materials Ltd announced on Tuesday it would separately list Shui On Land Ltd, a developer of high-end apartments and offices on the Chinese mainland, on the main board of the Hong Kong stock exchange.

 

Shui On Land Ltd, which is 29.3 percent-owned by Shui On Construction and Materials Ltd, said it re-submitted its listing application to the exchange on Monday.

 

Ronny Pang Chau Ying, the spokeswoman for Shui On Land Ltd, told China Daily yesterday that although she could confirm the resubmission, the firm "does not have any further comment at this stage."

 

"Details in respect of the separate listing, including the related offer structure and the expected timetable, have not yet been finalized," the company said. It will "make a further announcement as and when appropriate."

 

Shui On Land Ltd's principal business is the development, sale, leasing, management and ownership of residential, office, retail, entertainment and cultural real estate on the Chinese mainland.

 

It holds various development projects in Shanghai including the Taipingqiao project, which incorporates Shanghai Xintiandi.

 

It scrapped its planned HK$7.96 billion (US$1 billion) initial public offering (IPO) on June 15 due to "deteriorating market conditions," Shui On Group Chairman Vincent Lo Hong-sui was quoted as saying.

 

Deutsche Bank AG, HSBC Holdings PLC and JP Morgan Chase & Co handled Shui On's sales for its first listing try, said the spokeswoman, but she refused to reveal the underwriters of its second attempt.

 

The major reason for the postponement, according to Terence Tang, head of Jones Lang LaSalle's China investment department in Shanghai, is because "investors couldn't see clearly at that time what kind of macro-control measures would be adopted by the central government towards foreign investment in the property market on the mainland."

 

Shui On re-started its IPO only six days after the central government officially issued regulatory measures to curb foreign investment on the mainland's property market.

 

And since new regulatory measures were introduced at the end of May, "the attitude of the central government toward foreign investment now becomes clarified and the market conditions become stabilized," said Tang.

 

"For Shui On, I would say it's a very good opportunity to revive its listing plan at this moment," said Tang.

 

(China Daily August 4, 2006)