CMA

CMA: Announce that it has received approval from HKEX to list via way of introduction, and the listing is expected to take place on 18 Oct 2011. CICC and JP Morgan are the joint sponsors of the proposed secondary listing.

Rationale for the listing is to achieve longer-term strategic objectives via:
1) Creating a platform to widen investor base and enhance CMA’s attractiveness to investors in Hong Kong and China;
2) Attracting research coverage on CMA and helping to raise its profile and enhance its market visibility; and
3) Enhancing CMA’s ability to access additional sources of capital in two leading global capital markets in SG and HK.

Co. add that as this is a listing by introduction on HKEx, no equity will be raised, as such, do not expect any immediate, short-term impact on share price. However move could enable grp to tap capital from the top two financial markets in Asia in the future.

-Credit Suisse has an 'outperform' call with TP of $1.78 on grp,
-Nomura maintain Buy, TP $1.69, (CMA trading at 28.7% discount to NAV and 0.77x FY12 P/B),
-CS maintain O/p, TP $1.78, (trading at 0.8x P/B, expect its recently raised stakes in the operational Shanghai malls —Hongkou and Minhang malls, to boost its China earnings by early 2012),
-DB maintain Buy, TP $1.70, valuations attractive at 36% disc to NAV & 0.8xP/B.