Chinese Property IPO In Hong Kong To Test Investor Appetite

Following a total of nine IPOs by Chinese property firms in Hong Kong in H209, Fujian-based residential developer China SCE Property has become the first developer to take the same route this year. SCE hopes to raise as much as US$255mn through the sale of 600mn shares. However, at the end of 2009 investor interest clearly began to show some fatigue towards the sector, with two of the nine forced to cancel their listings - namely Excellence Real Estate and Sunac China . To make matters worse, SCE is applying to come to market at a time when Beijing is expected to introduce additional measures to prevent the developing property bubble from inflating much further. Given such developments, it is fair to say that the timing of SCE's share offering comes as something of a surprise.

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