ARA Asset Management (D1R.SG), an affiliate of Hong Kong billionaire Li Ka-shing’s Cheung Kong Holdings (0001.HK), is planning the first-ever yuan-denominated initial public offering in Singapore, The Wall Street Journal reported, citing unnamed sources. Though one source said plans are at an early stage, ARA is looking at a real-estate investment trust (REIT) listing of its Dragon Fund II assets, which holds assets across Asia. A yuan-denominated IPO in Singapore will be more challenging than in Hong Kong due to the city-state’s smaller pool of offshore renminbi. But Hong Kong investors have shied away from investments focused on stable income, and Li’s Hui Xian REIT, which launched a US$1.6 billion yuan-denominated IPO last year, now trades at 24% below the initial offering price. Singapore has a stronger track record of trust listings; business trusts and REITs made up US$6.9 billion of its total US$7.6 billion in IPO revenues last year.