In a statement to the Hong Kong Stock Exchange, Shui On Landsaid: "In light of deterioration in market conditions, the companyand the joint global coordinators have decided to postpone theglobal offering. …The company looks forward to re-launching theoffering at the earliest suitable opportunity."

Shui on Land was planning to close its offering on Thursday andbegin trading on June 23. But Hong Kong's stock market has beencaught up in the turbulence affecting global capital markets, withthe Hang Seng Index falling to a five-month low earlier this week.Global markets are jittery about the prospect of rising interestrates as the US Federal Reserve tries to damp down inflationarypressures. At the same time there has been a re-pricing of riskpremiums globally and capital flight from emerging markets. Earlierthis month, Sun Hung Kai Properties and Henderson Land Developmentpostponed launching their REITs in Hong Kong. The Hong Kongcompanies have also been hit by concerns about contradictoryindicators about mainland China's property market. China is lessaffected by the knock-on effects of US rate rises.

The government is keeping interest rates low in an attempt tostem the capital inflows that threaten to distort its money supply.But at the same time, ministers have sought to slow the propertymarket by limiting the amount of land available for expensivedevelopments.