market-rebound-may-be-too-late-for-evergrande

Market rebound may be too late for Evergrande

The property developer is finding it tough to lure investors to its IPO as sector peers tumble by up to 30%.
The slight rebound in the Hong Kong stockmarket yesterday, better-than-expected earnings from two major investment banks and a three-quarter point rate cut in the US overnight is likely to have come too late to rescue the latest Hong Kong initial public offering.

Evergrande Real Estate Group, which is in the market with a $1.3 billion to $2.1 billion offering, has been struggling to attract enough investors as sentiment for Chinese property stocks remains poor amid concerns of more cool-down measures and rate hikes. Share prices of its closest comps have tumbled 20%-30% during the roadshow, virtually wiping out EvergrandeÆs entire valuation discount and destroying one of the key attractions of the deal.

The institutional portion...
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