[photopress:shanghaiapartments_galore.jpg,full,alignright]SPG Land is planning to raise up to $158 million from an initial public offering. The mainland China property company, which is developing six residential projects in Shanghai, is selling 250 million shares. They are being put on sale in Hong Kong this week at a price near the top of the indicative range of HK$4.28 to HK$4.90 each.
Chinese property stocks have performed well this year, which is driving interest in SPG Land.
Stone Shi, an analyst at Sung Hung Kai Financial, said, ‘Appetite for Chinese property companies is still there despite policy uncertainties.’ He said that as mainland China property prices are still high relative to personal income, the Chinese government may continue to take austerity measures to cool the market. Measures could include interest rate hikes or restrictions on land access for developers.