New World Development (NWD) has won approval from the Hong Kong stock exchange to spin off its mainland property unit in a move that aims to raise between US$500 million and US$600 million.
New World China Land is expected to be listed in the middle of next month, barring a dramatic turnaround in market conditions.
It is believed to be one of the biggest mainland property flotations in Hong Kong in terms of market capitalisation, land bank and - probably - proceeds to be raised.
Sources said approval had been obtained from the exchange at a hearing on Thursday.
The timing appears favourable given an expected improvement in sentiment towards the mainland property market following Beijing's interest-rate cuts this week.
The mainland cut deposit rates by an average one percentage point and lending rates by an average of 75 basis points from Thursday in an attempt to boost the slowing economy.