Home Capital Broker's Calls

Liquidity curbs in China expected to have most impact on this stock

PC Lee
PC Lee12/15/2016 01:18 PM GMT+08  • 3 min read
Liquidity curbs in China expected to have most impact on this stock
SINGAPORE (Dec 15): GLP, the owner and operator of modern warehousing facilities, could be most affected by the liquidity curbs introduced in China given that the latter accounts for over 56% of its NAV, says UOB Kay Hian in a Tuesday report.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Dec 15): GLP, the owner and operator of modern warehousing facilities, could be most affected by the liquidity curbs introduced in China given that the latter accounts for over 56% of its NAV, says UOB Kay Hian in a Tuesday report.

“We downgrade GLP to 'hold' but maintain our target price of $2.40 post the 11% run-up in share price,” says lead analyst Vikrant Pandey who is also maintaining its “overweight” on the sector with CapitaLand, City Developments, A-REIT, CapitaLand Commercial Trust and Frasers Logistics and Industrial Trust as his top picks.

In a Tuesday report, Vikrant says capital curbs in China will see overseas investments face closer scrutiny from state regulators. These include capital outflows from China into overseas real-estate deals worth more than US$1 billion ($1.4 billion) by Chinese state-owned enterprises (SOE), and investments of US$1 billion or more by any Chinese companies in an overseas entity unrelated to the investor’s core business.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now