Sino Ocean Real Estate Development, partly owned by China’s largest shipping firm, COSCO International, will make an initial public offering, an IPO, worth up to $1.3billion on the Hong Kong stock exchange.

The Chinese property company will start pre-marketing next week (What does pre-marketing mean? Letting the big players in early for a slice of the pie) and aims to raise somewhere around a billion dollars. In doing it this way — no formal announcement — it is testing the water after weeks of world stock market turmoil.

Hong Kong stocks have galloped 17.6% since China allowed mainland individuals to invest in Hong Kong stocks. This, in turn, encouraged Chinese companies to move forward with plans to list on the Hong Kong exchange. In a sense it gives access two worlds of money — China and Hong Kong.

Y.K. Chan, a strategist at Phillip Capital Management in Hong Kong said, ‘After recent stock market volatility, investors will be more selective about investing in IPOs, as they are not willing to lock up the money for buying IPOs. Instead, they will prefer investing in the secondary market.’
Source: The Star Online