NWD Allegedly Experiencing Large Tenant Departures at 11 SKIES; Airport Authority Engaging with Alternative Developers for Collaboration
Tenant Terminations at 11 SKIES: Numerous tenants, including Chow Tai Fook, Uniqlo, and LUK FOOK HOLD, have terminated their leases at the 11 SKIES mall near Hong Kong International Airport, amid significant short selling activity.
Impact of Terminal 2 Delays: Delays in the construction of the airport's Terminal 2 are expected to postpone the opening of 11 SKIES to at least mid-year, further affecting its prospects.
NWD's Response: New World Development (NWD) has not commented on the tenant terminations, while the Airport Authority Hong Kong is considering alternative operational arrangements with other developers.
Market Activity: The short selling ratios for Chow Tai Fook and other associated companies indicate a lack of confidence in their performance, with Chow Tai Fook experiencing a short selling ratio of 47.384%.
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HSI Drops 498 Points at Noon; Commodity Shares Tumble; CSPC Pharma Falls Over 12%
Market Reaction to Fed Chair Nominee: The DXY rose following President Trump's announcement of the Fed Chair nominee, while the Hong Kong stock market experienced significant declines, with the HSI dropping 498 points or 1.8% by the morning session's close.
Gold and Mining Stocks Performance: Gold prices fell over 3%, leading to substantial losses in mining stocks such as SD GOLD and ZIJIN GOLD, which plunged 12.9% and 10% respectively, alongside other mining companies experiencing similar declines.
Pharmaceutical Sector Developments: CSPC PHARMA's stock plummeted 12.5% despite a partnership with AstraZeneca for drug development, which included an upfront payment exceeding HKD9.3 billion.
Corporate News and Market Rumors: The Panama Supreme Court ruled contracts for two local ports unconstitutional, negatively impacting CKH HOLDINGS, while rumors of a potential ownership change at NEW WORLD DEV led to a 3.7% increase in its stock price.
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.
