[ET Net News Agency, 16 January 2018] HSBC Global Research cut its target price for
China Jinmao Group (00817) to HK$3.9 from HK$4.1, and maintained its "hold" rating.
Jinmao announced it would raise net proceeds of HK$3,305m through the placing of 900
million shares at HK$3.70/share. The research house said this is the first placement done
by a Chinese developer in 2018, which should not be surprising given the strong share
price rally since early 2017 and the fact that leverage is on the rise following a year of
active landbanking.
HSBC believes this placement could rekindle concern about the sector's equity
fund-raising needs, and perhaps exert near-term pressure on the share price. (KL)