HSI Declines by 182 Points; Gold and Resource Stocks Fall; NWD Surges Over 5%
Market Performance: The Nasdaq fell by 0.7% due to a drop in Microsoft shares, while the DJIA rose slightly by 0.1%. Hong Kong's stock market also opened lower, with significant declines in various indices.
New World Development Rumors: There are rumors that New World Development is changing ownership, with Blackstone negotiating to become the largest shareholder, leading to a 5.6% increase in its stock price.
Gold and Resource Sector Declines: Gold prices saw a significant drop, affecting stocks like SD Gold and Zhaojin Mining, which opened lower. Other resource companies, including Jiangxi Copper and CMOC, also experienced declines.
Tech Sector Performance: Major tech stocks such as Tencent, Alibaba, and JD.com opened lower, reflecting a broader trend of declines in the technology sector amidst increased short selling activity.
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Citi Increases Target Price for NEW WORLD DEV to HKD9.6, Maintains Sell Rating Due to Possible Corporate Actions
Company Actions and Ratings: New World Development (NWD) is focused on refinancing and asset disposal, with Citi maintaining a Sell rating while raising the target price from HKD4.8 to HKD9.6, highlighting potential equity dilution risks from corporate actions.
Market Speculation: There are rumors regarding Blackstone Inc.'s potential takeover of NWD, which has generated market excitement about possible corporate actions that could impact share control and introduce downside risks.
BofAS: Blackstone's Possible Purchase of NWD Anticipated to Offer Short-Term Advantage to Developers
Blackstone's Potential Acquisition: Blackstone Inc. is reportedly considering acquiring a significant stake in New World Development (NWD), which could make it the largest single shareholder, as noted in a BofA Securities report.
NWD's Clarification and Market Impact: NWD clarified that no agreement has been finalized, but it acknowledged receiving investment inquiries. BofA Securities believes this reflects growing confidence in Hong Kong's real estate market, potentially boosting stock prices in the short term.
