(Adds company official’s comment, background)
HONG KONG, Sept 18 (Reuters) - Chinese state-owned developer Beijing Capital Land has scrapped its A-share offering plan, after waiting over two years for approval in an IPO market that sees restricted liquidity into the property sector.
In a filing late on Monday, the Hong Kong-listed company cited business development needs as the reason for withdrawing the IPO application, without elaborating.
The company understood from various channels that the tightening policy on the IPO market and new share issues for property firms will not be loosened in the next two to three years, so it decided to suspend the plan as it is also costly having to update the application materials every six months, a Beijing Capital Land official told Reuters on Tuesday.
The Beijing-based developer will resubmit a listing application once there is sign of easing, he added. The official declined to be named as he was not authorized to speak to media.
The withdrawal is not expected to have any material adverse effect on the financial position or operations, the company said.
The developer announced its latest A-share offering plan in March 2016 as a way to establish new financing platform.
China Securities Regulatory Commission has not approved any listing application by property developers since the IPO market reopened in 2015, as it tries to limit liquidity in the sector as part of its tightening policy.
The withdrawal is not expected to have any material adverse effect on the financial position or operations, Beijing Capital Land said in the filing.
Currently, developers Guangzhou R&F Properties and Dalian Wanda Commercial Management are still in the queue to get approval to list in China. (Reporting by Clare Jim; Editing by Amrutha Gayathri and Gopakumar Warrier)