Beijing developer Soho China has withdrawn a New York listing application but intends to proceed with a Hong Kong initial public offering (IPO) to raise US$100 million to US$200 million by the end of March. Sources said Soho China felt an IPO in the United States would be costly and of little benefit. Listing in the US had become more complicated and costly for foreign stocks due to the Enron scandal and new legal requirements, a brokerage source said, adding weak market sentiment in the US stock market would also affect investor demand. 'Institutional investors in the US can still subscribe [to the stock] in Hong Kong even without a US listing. Only retail investors will be affected. Hopefully, the stock will be listed in Hong Kong by the end of March,' the source said. Goldman Sachs is the lead manager of the SAR listing while Morgan Stanley and ABN Amro are co-managers. UBS Warburg analyst Eric Wong said poor US sentiment was making it difficult to attract investors to mainland property stocks and had forced Soho China to scrap its plan. 'Soho China mainly develops luxury residential projects in Beijing but its capital value has depreciated for two consecutive quarters. Investors will be cautious as its profit is difficult to forecast,' he said. Mr Wong was not optimistic about the company's Hong Kong listing plan. 'The listing was deferred from last year but the market is deteriorating now,' he said. He was also pessimistic about the listing plans of two other mainland developers, Beijing Capital and Shanghai Forte Land. 'I'm bearish about the Beijing property market. It could face further adjustment. The Shanghai property market will be better but is also clouded by ample supply,' he said. BNP Paribas Securities head of regional property research Adrian Ngan Wai-hung said it was reasonable for Soho China to focus on a Hong Kong IPO because unproven demand in the US might not justify the expense of listing there. He said the mainland developer might scale down its fund-raising target in the sluggish market. It had been reported that Soho China had delayed its IPO from October last year because banks disagreed on the Beijing-based developer's profit outlook. The delay came amid sharp share-price losses suffered by many Hong Kong-listed mainland firms after media reports focused on poor corporate governance. It also followed signals from Beijing it intended to cool the property market to prevent a price bubble.