APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

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On 31st August 2016, <a href="https://www.smartkarma.com/entities/50" target="_blank" data-smartkarma-citation="entities:50:1">Hang Lung Group Ltd (10 HK)</a>'s discount to NAV breached +3x Standard Deviation (SD) again in less than 2 months. This was on the back of rumours that Hang Lung Group will be added into MSCI Hong Kong.In this insight, we analyze the holdco primarily on these five factors:<div><ol><li>What's on Offer - Discount to NAV at +3x SD</li><li>Reasons for Mean Reversion - Anticipation of index inclusion is unsustainable</li><li>Statistics and Set-Up - Short Hang Lung / long Hang Lung Properties</li><li>Catalysts - No index inclusion</li><li>Potential Risks - Weak Hong Kong and China property market</li></ol></div>

On 31st August 2016, Hang Lung Group Ltd (10 HK)'s discount to NAV breached +3x Standard Deviation (SD) again in less than 2 months. This was on the back of rumours that Hang Lung Group will be added into MSCI Hong Kong.In this insight, we analyze the holdco primarily on these five factors:What's on Offer - Discount to NAV at +3x SDReasons for Mean Reversion - Anticipation of index inclusion is unsustainableStatistics and Set-Up - Short Hang Lung / long Hang Lung PropertiesCatalysts - No index inclusionPotential Risks - Weak Hong Kong and China property market

Hang Lung

Hang Lung Group - Breaching +3x SD Again