(Farm shares in second paragraph).
April 29 (Bloomberg) - billionaire Li Ka-shing Hui Xian Real Estate Investment Trust, first selling stock in Hong Kong denominated in yuan, falls on his debut after offering performance lowest among trusts of property of the city.County of hui decreased by 11% and the end of his first day 9.4% less than 4.75 yuan. The trust raised 10.5 billion yuan ($1.6 billion) units at 5.24 yuan each, bottom of its range of selling prices.Supported by an Office and retail development in Beijing, the trust has yield prediction of 4.26% compared to an average yield estimated 4.85% for the REIT traded in Hong Kong. Xian hui marked the first time since at least eight years old Li of 82 years, richest man in the city, had to settle for the smallest quantity requested in an introduction on the stock exchange of a property trust. "A point of sale of the trust is that you are also betting on a yuan appreciation, but it could have indicate some investors because they thought the procedure for the exchange of yuan to invest is simply too much trouble and complicate, ' "said Castor Pang, Director of research to Cinda International Holdings Ltd." adds the fact that it offers a slightly lower yield than most of other REITs over there. " "Individuals requested approximately 2.2 times the stock reserved for the latter, according to a statement to the stock exchange of Hong Kong yesterday.Three other REITs supported by Li sold stock, in the IPOs since 2003 has raised the target maximum data compiled by Bloomberg show. Prosperity REIT, last REIT IPO of Li in Hong Kong, which has begun negotiations in December 2005, attracted orders from sale retail of 300 times the stock on offer.Li REITsUnderwriters BOC International Holdings Ltd., Citic securities and HSBC Holdings Plc values set aside 20 percent of the total offering to Xian Hui for individuals, double the allocation in the typical retail in Hong Kong IPOs. "" The decision was motivated by expectations of Hui Xian would be popular among investors individuals, people familiar with the process said "."It seems that this will not be as successful as people thought that it would be, Alex, Director General of Richland Capital Management Ltd. in Hong Kong, who oversees the 300 million dollars of assets, said before the commercial actions. "Very strong response to the introduction on the stock exchange was expected by the retail market, but it turns out that it was barely oversubscribed."Prosperity REIT now has a performance indicated by 5.91%, according to Bloomberg data. Suntec Real Estate Investment Trust and Fortune Real Estate Investment, FPI Li public to Singapore in 2003 and 2004, have yields of 6.07% and 6.51%, respectively, according to data from Bloomberg.Yuan DepositsLi seeks to take advantage of the China's efforts to promote an international currency use and deposits of yuan swelling in Hong Kong.There are about 200 billion yuan of deposits in Chinese-currency "inactive" in Hong Kong which could flow into the introduction in bourseSelon a sale document sent by one of the insurers ahead of marketing for the sale of stock of. "Originally, people think that if this is successful, it does there will be more denominated of yuan IPOs in Hong Kong, but if the stock goes under water, then the interest for the future of intellectual property offices labels yuan will be less"than the said."Deposits of yuan Hong Kong may rise to 870 billion yuan by the end of this year, Zhang Guangping, Assistant Director-General of the China Regulatory Commission Bank Shanghai, said today. The city yuan denominated deposits reached a record high of 52 billion in February.Oriental PlazaHui Xian, controlled by Li Cheung Kong (Holdings) Ltd. and Hutchison Whampoa Ltd., is supported by Oriental Plaza in Central Beijing. Oriental Plaza, covering 100,000 square meters (1.1 million square feet), consists of eight office towers of high range, a shopping centre, a Grand Hyatt Hotel and serviced apartments, according to his site Web.Les properties are of good quality in a location of choice, but that does not make up for other risk factors, said Katie Chan, analyst based in Hong Kong to Haitong International Securities Group Ltd. "for example, some investors may think that there may be potential gain in rate of changemais the IPO prospectus in reality made it clear that dividends may be paid in" Yuan. "Claim to ownership of hui Xian to the assets of the trust backup expires in 2049, according to the IPO prospectus.Li was ranked 11th in annual global rich list of Forbes magazine the month last with an estimated fortune of $ 26 billion.-With the help of Kana Nishizawa in Tokyo. Editors: Andreea Papuc, Malcolm Scott.
To contact the reporter for this story: Kelvin Wong in Hong Kong to the kwong40@bloomberg.net
To contact the editor responsible for this story: Andreea Papuc at the apapuc1@bloomberg.net
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