As many as 12 mainland property developers could be seeking to list in Hong Kong, the South China Morning Post reported. Guangzhou’s Evergrande Real Estate and Shanghai’s Glorious Property Holdings hope to raise approximately US$1 billion each while Shenzhen’s Fantasia Group hopes to raise US$500 million through IPOs. The companies are encouraged by a strong Hong Kong stock market, which has risen by more than 60% since March, and by skyrocketing housing prices, which have risen 20% to 30% in Beijing and Shanghai. However, the central government has already put out announcements via state media that it suspects a housing bubble may be forming. Analysts said that Beijing might impose measures to prevent such a bubble, which could cause a 10% to 25% correction in property markets in the fourth quarter of 2009 or early 2010.
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