The window for fund raising on the world's busiest stock exchange for initial public offerings may be drawing shut

In the latest sign, Bluestar Adisseo Nutrition Group Ltd., a Chinese maker of animal nutrition products 20% owned by U.S. private-equity firm Blackstone Group LP, scrapped plans to raise as much as US$1.56 billion in a Hong Kong IPO on Wednesday.

A day earlier, China Datang Corp. Renewable Power Co. postponed roadshows for its US$1 billion offering in Hong Kong indefinitely. Earlier this month, CJ Land Holdings Ltd. called off an US$619 million IPO.

Analysts said that sentiment toward new deals in all sectors has soured in recent days. 'The IPO market is cooling down,' said Francis Lun, general manager at Fulbright Securities.

This year, companies have raised more money on the Hong Kong Stock Exchange than on any other venue globally, an indication of the rush of global capital into emerging markets and away from developed ones. Its exchange offers foreign investors the greatest exposure to plays on China's growth at a time when China is viewed as an engine of the global economy.

But risk aversion among some investors is starting to build again after several months in which the appetite for emerging-market investments seemed limitless. While none of these events have provoked a selloff on their own, a deadly border clash between North and South Korea on Tuesday, a massive European Union bailout for Ireland and rising inflationary pressures in China are all starting to weigh on sentiment.

On Wednesday, Bluestar Adisseo blamed 'continued and excessive market volatility' for the deal's cancellation. It was the biggest deal to be shelved since Agricultural Bank of China Ltd.'s US$22.1 billion record IPO in July.

The blue-chip Hang Seng Index, though up 5.3% for the year, is down 2.8% in the past week and has slid 7.8% from its high point for the year on Nov. 8. On Wednesday, it closed at 23023.86, up 0.6% from Tuesday.

The changing sentiment could affect other companies pushing to get their listings approved before the end of the year. Four are working on deals to raise a total of more than $4 billion ahead of the Christmas holidays.

These include Huaneng Renewables Corp., which wants to raise as much as US$1.5 billion, and Russian electricity producer EuroSibEnergo, which is controlled by Russian magnate Oleg Deripaska and is targeting around the same amount. Sateri Holdings Ltd., a maker of specialty cellulose with forests in Brazil and China, is seeking as much as US$597 million, and China Zhengtong Auto Services Holdings Ltd. is looking to raise US$554 million.

Ben Kwong, associate director of KGI Asia, said investors have become more cautious after several recent listings traded below their offer prices, including two that listed this month.

Hong Kong's stock market took a beating in April after the outbreak of the European debt crisis, leading to the cancellation of IPOs such as Swire Properties Ltd.'s US$3.09 billion offering.