In a statement to the Hong Kong Stock Exchange, Shui On Land said: "In light of deterioration in market conditions, the company and the joint global coordinators have decided to postpone the global offering. …The company looks forward to re-launching the offering at the earliest suitable opportunity."

Shui on Land was planning to close its offering on Thursday and begin trading on June 23. But Hong Kong's stock market has been caught up in the turbulence affecting global capital markets, with the Hang Seng Index falling to a five-month low earlier this week. Global markets are jittery about the prospect of rising interest rates as the US Federal Reserve tries to damp down inflationary pressures. At the same time there has been a re-pricing of risk premiums globally and capital flight from emerging markets. Earlier this month, Sun Hung Kai Properties and Henderson Land Development postponed launching their REITs in Hong Kong. The Hong Kong companies have also been hit by concerns about contradictory indicators about mainland China's property market. China is less affected by the knock-on effects of US rate rises.

The government is keeping interest rates low in an attempt to stem the capital inflows that threaten to distort its money supply. But at the same time, ministers have sought to slow the property market by limiting the amount of land available for expensive developments.