China retail malls / CMA

China retail malls / CMA: SM Prime Holdings, the Philippines’ biggest retail developer, plans to spend $1.9b in the next 3 years on retail devts at home and in China. The developer wants to build one retail mall in China a year, targeting less affluent or Tier 2 cities. SM Prime already owns 4 retail malls in China, with a 5th opening in Chongqing by the end of the year. StanChart notes, China retail is getting to be a crowded trade but says new aspirants should note that home ground experience does not automatically translate to success in China - as CMA has well demonstrated. Points to existing local developers’ disinterest in retail – including China Vanke, which continues to sell retail sites to CMA. But adds, while competition (at completed malls or for land sites) will likely remain high, CMA’s relatively longer history in China and its established retail presence could serve it well as more players pile on. The house keeps its Outperform rating on CMA with TP $1.79.