Hong Kong-listed GOME Electrical Appliances Holding Ltd. (00493.HK) said Tuesday it has cancelled a plan to form a property joint venture with companies owned by jailed founder Huang Guangyu.

"The recent volatility and uncertainty in the macroeconomic environment which hampered the visibility over the property market in the near term" led to the termination of the agreement, the company said in a statement.

Because no capital had been contributed by the parties the board believes the termination of the plan won't have any material adverse effect on the company's operations, the statement added.

In October the company said it was putting the CNY200 million joint-venture plan on hold partly because of market conditions.

GOME said on Sept. 27 it had entered into an agreement to form a joint venture with Beijing Eagle and Beijing Gome to acquire and invest in retail properties in lower-tier cities in China in order to reduce operating costs and increase margins.

Both Beijing Eagle, a property developer, and Beijing Gome, an electrical appliances retailer, are owned by Huang, who has been serving a 14-year prison sentence since May 2010 for bribery and other illegal business practices.