APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

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<ul><li>Wheelock’s discount to NAV has narrowed to 20%, just shy of the 12-month low of 19%, and compares with a one-year average of 25.3%.</li><li>The Wheelock/Wharf stub trade ostensibly pitches sentiment towards Hong Kong property development against Hong Kong retail sales.</li><li>Factors affecting the stub (HK development property) center on demand, HIBOR, currently at post-GFC highs; and <a href="https://en.wikipedia.org/wiki/CY_Leung_as_Chief_Executive_of_Hong_Kong" target="_blank">Leung Chun-ying</a>’s (CY) recent resignation and associated policy risk. Wharf faces new competition in 2017 amidst a two-year slide in retail sales at its two flagship developments, together with a depreciating RMB for PRC shoppers.</li><li>Below we touch on select key factors and how best to trade at these levels.</li></ul>

Wheelock’s discount to NAV has narrowed to 20%, just shy of the 12-month low of 19%, and compares with a one-year average of 25.3%.The Wheelock/Wharf stub trade ostensibly pitches sentiment towards Hong Kong property development against Hong Kong retail sales.Factors affecting the stub (HK development property) center on demand, HIBOR, currently at post-GFC highs; and Leung Chun-ying’s (CY) recent resignation and associated policy risk. Wharf faces new competition in 2017 amidst a two-year slide in retail sales at its two flagship developments, together with a depreciating RMB for PRC shoppers.Below we touch on select key factors and how best to trade at these levels.

Wheelock (20 HK) – The Retail Vs. Development Debate