A Singaporean real-estate investment trust backed by Hong Kong billionaire Li Ka-shing yesterday withdrew its yuan IPO owing to a weak market, scuppering what would have been the city-state's first flotation sold in the Chinese currency.

Real-estate fund manager ARA Asset Management suspended Dynasty REIT's IPO until further notice after consulting its bankers. It may launch a China-focused REIT later, the company said.

The trust, which launched the offering last week, had hoped to raise up to 5.41 billion yuan (S$1.06 billion) from institutional and public investors. It would have been the second flotation denominated in the Chinese currency outside mainland China and Singapore's largest IPO since Hutchison Port Holdings Trust raised US$5.5 billion in March last year.

"While Dynasty did receive substantial support from institutional and retail investors, including the cornerstones in the transaction, weak global markets continue to impede overall demand, which would likely impair aftermarket performance," ARA said.

Dynasty REIT had planned to price its IPO yesterday ahead of an Oct 30 listing date. Poor recent stock debuts on regional bourses had also weighed on the minds of ARA executives and their bankers, according to a banker handling the proposed IPO.

ARA had proposed to inject three Chinese commercial properties in Nanjing, Dalian and Shanghai into the trust. ARA's flagship Asia Dragon Fund, which owns those assets, will consider selling the properties by other means, said Mr Mark Chu, Chief Executive of Dynasty REIT.

DBS Bank, Standard Chartered and Macquarie were handling the IPO.

TODAY