Henderson Land Development chairman Lee Shau-kee has given the cold shoulder to Hong Kong's resurgent initial public offering market, saying the current share sales are too small to whet his appetite. 'I have a big appetite, but the number of shares is so small,' Mr Lee said yesterday. 'I would not make an attractive profit even if I successfully subscribed. I have not subscribed to any new offerings recently. 'In the past, nearly all the new offerings were of good quality, but the recent offerings are varied.' Bawang International (Group) Holding, a mainland shampoo retailer, has drawn more than HK$16 billion worth of orders from local investors, or about 100 times the shares available in the retail tranche of its offering. The company is offering 700 million new shares at HK$2.38 each. Other new listings included coal trading and logistics company China Qinfa Group, mainland sportswear retailer 361 Degrees International and scrap metal processor China Metal Recycling (Holdings). Despite his reluctance to invest in new offerings, Mr Lee was bullish on Hong Kong stocks, predicting that the Hang Seng Index would climb to 20,000 points by the end of this year. However, he thought stocks would enter a consolidation in the third quarter. 'I will buy shares if the Hang Seng Index falls to 16,000 points, but if it climbs to 20,000 points, I will sell part of my shares,' he said. 'I will sell more shares once the index reaches 25,000 points. But I would sell only up to 50 per cent of my portfolio, or not more than HK$60 billion.' The Hang Seng Index advanced 3.79 per cent over the week to 18,600.26 points, compared with last Friday's finish of 17,920.93 points. Mr Lee said China Overseas Land & Investment, China Shenhua Energy, CNOOC, China Life Insurance and Industrial and Commercial Bank of China were among his favourite stocks. Asked about Henderson Land's A-share listing plan, Mr Lee said he believed the dynamic mainland equity market would have plenty of demand for the company's shares, but regulatory hurdles would prevent a mainland share offering in the near term. Speaking before ceremonies to mark the donation of funds to Peking University and Tsinghua University, Mr Lee said he was confident about the strength of the Hong Kong and mainland property markets. Home prices in Hong Kong would gain 5 to 10 per cent in the second half of this year, he said. Mr Lee said Henderson acquired two commercial-residential sites in Anshan, Liaoning province recently for 1.4 billion yuan (HK$1.58 billion). The sites could provide a total gross floor area of 10 million square feet and boost the company's land bank on the mainland to 140 million sqft.