Hong Kong-listed Shanghai Forte Land was poised to launch an A-share initial public offering to raise up to 1.58 billion yuan (HK$1.78 billion) to fund new developments, sources said. The developer planned to sell 632 million shares and the listing application would be reviewed by the China Securities Regulatory Commission as early as next month, the sources said, adding that the A shares might be offered at a 10 per cent discount to its Hong Kong-listed H shares. Forte's H shares closed at HK$2.81 on Friday. 'If the listing were approved, it would show that the mainland regulator still welcomes H-share listings in the belief they can inject new vigour into the weak market,' said Guotai Junan Securities analyst Mo Yanjun. 'The current climate is not good for IPOs.' Following Forte, Guangzhou R&F Properties, would start its A-share sale process, sources said, adding that Citic Securities was the underwriter of the offering. China International Capital Corp is managing Forte's A-share sale. The CSRC has rejected 11 share-sale applications since April amid worries that the offerings would soak up funds from a weak market. The benchmark Shanghai Composite Index has lost 34 per cent so far this year, making it the world's third-worst performing market. In April, Hong Kong-listed Zijin Mining Group, the mainland's second-largest gold miner, cut is A-share offering volume to 1.4 billion shares from 1.5 billion as it bowed to poor sentiment. Zijin's A shares triggered a buying spree on April 25 when they debuted in Shanghai, soaring as much as 208.56 per cent before regulators suspended trading. The shares closed at 13.92 yuan on the first trading day, still up 95.23 per cent from the initial offering price. In a bid to cool the property market, the CSRC said in March that developers would be barred from using initial offering proceeds to buy land. Mainland developers have been hit by a credit crunch this year amid Beijing's monetary tightening steps. Analysts said the CSRC was still determined to attract H-share firms to list on the mainland market. 'After all, the regulator thinks the current market is not a bear yet,' Mr Mo said. 'It would be more difficult to issue IPOs if the index were to slump further.'