Xinyi Glass Holdings Ltd. said it has postponed the Hong Kong listing of its solar-glass unit because of volatile markets and the impact of the European sovereign debt crisis.

Xinyi Solar Holdings Ltd. is the latest initial public offering to be derailed by persistent market volatility after Chinese iron-ore producer Zhong Da Mining Ltd. delayed its US$300 million offering in late October.

Since late September, Hong Kong offerings totalling up to $4.5 billion, including those from Chinese construction machinery maker Sany Heavy Industry Co. and rival XCMG Construction Machinery Co., have ben put on hold.

Hong Kong´s benchmark Hang Seng Index fell 0.8% on Thursday to 18817.47, its fourth loss in six sessions. It has dropped 5.3% so far this month and is down 18% for 2011.

But some companies have forged ahead with listing plan. PCCW Ltd.´s telecom trust, HKT Trust & HKT Ltd., started taking orders from institutional investors Nov. 9 for an IPO that could be worth up to $1.4 billion, and Chow Tai Fook Jewellery Co. began testing investor response on Monday for its deal, which could raise up to $3.5 billion.

Xinyi Solar last week had begun informal meetings with investors, known as premarketing, for its roughly $150 million offering, according to a term sheet seen by Dow Jones Newswires. The company, which makes ultra-clear photovoltaic raw glass, had planned to sell 520 million new shares. An overallotment option that would boost the deal by 15% would have raised as much as $172.5 million for the Chinese company, according to the term sheet.

"Due to the recent volatility in the global capital markets and the prolonged adverse impact of the sovereign debt crisis among certain European countries on the global solar-energy industry, the future developments of the global solar energy industry remain uncertain," Xinyi Glass said in a statement to the Hong Kong Stock Exchange late Wednesday.

Xinyi Glass announced plans to spin off the solar-glass business in February. People familiar with the situation said at the time the company hoped to raise around $600 million from the IPO. Its shares fell 2.8%, or 23 Hong Kong cents, to HK$4.23 on Thursday.

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18.11.2011, Xinyi Glass Holdings Ltd./online.wsj.com

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