Swire Pacific (SWRA.LSE, 0019.HK, 0087.HK) has cancelled plans to raise US$2.7 billion in a Hong Kong initial public offering of its property unit because of worsening market conditions, the Financial Times reported. The Swire Properties listing would have been Hong Kong’s largest in more than a year. It was only a day away from pricing the sale of 907 million shares – a 13.79% stake. Market sentiment has been effected by fears over European sovereign defaults, as well as China and Hong Kong’s clamp down on the property market. While investor interest in Swire Properties – one of Hong Kong’s biggest developers – had been strong, appetite has been diminishing due to "treacherous market conditions", said one person close to the deal. Swire Properties’ decision to shelve its IPO comes just days after China’s New Century Shipbuilding pulled a US$481 million offering which would have been this year’s largest listing on the Singapore Exchange.