China Merchants Property Development (000024.SZ, 200024.SZ) announced it has decided to shelve its US$585 million share sale plans on concerns about the recent slump in its stock price due to government tightening, Reuters reported. The developer unveiled plans earlier to sell up to 200 million shares at no less than US$4.12 (RMB28.12) a share to select institutional investors, then downgraded the price target to RMB20.6 because of falling share prices. The prolonged price slump forced China Merchants to give up its share placement scheme, the company said in a statement to the Shenzhen Stock Exchange. The developer’s decision comes amid weakening stock markets in the region. Recently, Swire Properties pulled its US$2.7 billion listing in Hong Kong, while China’s New Century Shipbuilding also withdrew its Singapore IPO this month.
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