Evergrande set to scrap IPO due to weak demand

Chinese property developer Evergrande Real Estate is expected to scrap its US$2.1 billion Hong Kong share listing, having received less than half the minimum orders required, the South China Morning Post reported, citing sources close to the deal. The company extended the retail subscription period to try to fill the minimum quota, but investors, fearful of a property market slump, aren’t biting. China Vanke, the country’s largest property developer, saw its 2007 earnings jump 110.4% to US$685 million as sales surged on the back of rising incomes and a growing urban population. But the company warned that the market was undergoing a "rational adjustment" as government tightening measures brought down prices toward the end of the year.