(GS) Global Retail - Competitive Positioning framework to navigate retail paradi

Competitive Positioning framework to navigate retail paradigm shift

* Present new approach as channels blur
We are at a unique juncture to outline the
opportunity set for the global retail sector,
incorporating store-based retailers, e-commerce
pureplays, and brands selling direct and through
stores. We introduce our GS Competitive
Positioning (CP) framework to rank the 197
companies in our coverage universe, with $2.84tn
of revenue and $2.1tn in market cap. In an
industry undergoing disruptive change from ecommerce,
our framework compares retailers
using both traditional methods (access to growth,
pricing power, and volatility), as well as newer
means to address e-commerce suitability/risk.

* Assessing e-commerce is essential
E-commerce represents about 4.7% of global retail
sales and is expected to grow at a 16% CAGR over
the next five years, exceeding 10% of retail sales.
This growth will impact retailers’ margins (price
transparency), returns (omnichannel investment),
and sales (share losses). To discern positioning,
we assess three factors: (1) category exposure to
online disruption; (2) online penetration to gauge
success; and (3) real estate flexibility.

* New framework, but same opportunity
for outsized growth and returns
Organized retail remains a key driver of the global
economy at 18.5% of GDP or 33% of consumer
expenditures. Global retail sales have grown 4.3%
annually over the past 10 years and our coverage
has generated a 16% return on capital on average
(vs. the MSCI World Index at 10%). These attractive
fundamentals have been led by increasing global
wealth, consolidation within organized retail, and
improving supply chains. In our view, retailers can
still outperform by (1) adapting to the global rise of
e-commerce by driving online sales, rationalizing
real estate, and capitalizing on brand strength; (2)
driving growth (in categories or share); (3) exercising
pricing power (driving high gross margins and asset
turnover); and (4) managing profitability across
cycles (via cost control and execution).

* Our best positioned global retailers
We identify 50 top-quartile global retailers based
on Competitive Positioning that also generate
high returns. When coupled with valuation and
our fundamental views, our top picks, all Buy
rated, are Amazon, Dufry, Nitori, Ocado, Tiffany,
and VIP shop.

>>> Cargill needs to come up with serious counteroffer for Nutreco to see the bo

Cargill needs to come up with serious counteroffer for Nutreco to see the books

American agrofoodconcern Cargill will not be allowed to see the books of Dutch animal feed company Nutreco as it is a competitor, de Financieele Telegraaf reported, citing a letter from CEO Knut Nesse and chairman of the supervisory board Jan Maarten de Jong to Vereniging van Effecten Bezitters (VEB), a Dutch activist shareholders group.

VEB called on Nuterco to open its books on Sunday, as previously reported.

Ness and de Jong state that they have had multiple conversations by phone with Cargill. The company wants to see Nutreco’s books but Nutreco first wants to see an offer on the table that seriously rivals the bid of SHV. That bid stands at EUR 44.50 per share.
De Financieele Telegraaf

>>> O2 CEO says deal with Three ‘least likely’ scenario amid chatter of further

O2 CEO says deal with Three ‘least likely’ scenario amid chatter of further UK mobile operator consolidation following BT/EE talks

News of BT Group’s exclusive talks to acquire the UK mobile network operator EE has prompted speculation regarding further consolidation in the sector, The Daily Telegraph reported. The newspaper said O2 chief executive Ronan Dunne has described suggestions of a tie-up with rival UK network operator Three as the “least likely” scenario in the event of further consolidation. Dunne said O2’s mast sharing arrangement with Vodafone would be a considerable obstacle, the item added.

Dunne was quoted at the end of an article about BT’s proposed GBP 12.5bn (EUR 15.7bn) acquisition of EE. BT had been in talks both with EE’s owners, Orange and Deutsche Telekom and with Telefonica regarding a potential alternative deal to acquire the Spanish telecoms group’s UK subsidiary O2.

The item noted suggestions that Three, a subsidiary of the Hong Kong-based conglomerate Hutchison Whampoa, could make an offer for whichever of EE and O2 that BT does not buy.

It is thought that Three is keen to acquire any radio spectrum to be divested as a result of any regulatory intervention, the report added.

A Financial Times report noted analysts’ speculation that Telefonica could be interested in a deal with Hutchison Whampoa. The report suggested Talk Talk, a UK-based fixed line telecoms and pay TV operator, as an alternative bid target for Telefonica, as such a deal would allow the merged group to offer the “quad-play” package of fixed line, mobile, broadband internet and pay TV.

Separately, the Financial Times item said the FTSE-100 mobile operator Vodafone might consider a tie-up with Sky (formerly BSkyB), a listed UK-based satellite television group. Sky might itself consider buying O2, the report suggested.

Another report in the Financial Times said regulators would find it difficult to argue that the proposed acquisition of EE would give BT too much dominance. BT would will not increase its market share in one sector, but the regulator might consider whether the deal might allow BT to cross-subsidise parts of its business to the disadvantage of its rivals, the item argued.
Daily Telegraph, Financial Times

>>> What to look at today - 16th of December 2014

US Market closed lower, crude continue to be weak even after an overnight rebound...WTI traded down to $55,50...All ten sectors finished the day in negative territory with heavily-weighted financials (-0.9%), health care (-0.9%), and consumer discretionary (-0.6%) keeping the market under pressure...Retailers continue to OP following energy weakness...volume were above average @ 940mil shares...VIX @ 20,42 -3,13%...US After Hours FCEL +6.5%, WG +1.8%, WHR +1.4%, PAY +0.3%, AXAS -2.7%, ELY -0.6%, KO -0.4%, ESRX -0.2% following earnings/guidance...Tokyo stocks are leading the decline once again as the reversal in overextended Yen weakness continues to highlight the general risk-off environment....China flash manufacturing PMI contracted for the first time in 7 months, even though employment decrease slowed and new export orders increased faster. Disinflationary factors were increasingly more apparent and weighed on the index, with output and input prices decreasing at a faster rate. HSBC economist said about as much, stating "rising disinflationary pressures, which fundamentally reflect weak demand, warrant further monetary easing in the coming months."...Russian Central Bank shocked the Ruble to a 10% spike after a surprise 650BPS rate hike to curb inflationary pressures from the weaker currency and prevent more outflows. USD/RUB fell as low as RUB60 in the Asian session after collapsing in the US hours, tracking the free-falling oil prices to mid $50's/brl...Nikkei -2.01% Hang Seng -1.28% Shanghai +1.28%...

Eur$ 1.2454 S&P +0.25% EuroStoxx +0.24% Dax +0.17% SMI -0.16%

Macro :
- HSBC China Dec. Flash Manufacturing PMI 49.5; Est. 49.8
- Russia Increases Key Rate Most Since 1998 to Stem Ruble Rout
- Sydney Siege Ends in Shootout With Gunman, 2 Hostages Killed

Keep an eye on :
- AF FP : Air France Refuses ADP’s Planned 2015 Tariff Increase: Echos
- ALV GY : German Life Insurers May Suffer Amid Low Interest: Handelsblatt
- BT/A LN : BT Enters Exclusive Talks With EE Over GBP12.5b Acquisition
- CGG FP : CGG CEO Tells Figaro Co. May Sell Assets to Reduce Debt (full article in ur inbox)
- CABK SM : CaixaBank Raises Erste Stake to 9.9%, Renews Strategic Accord
- DL NA : Delta Lloyd Agrees to Sell Belgian Banking Business for EU219m
- ILD FP : Free Is Among Candidates to Buy Outremer Mobile Unit: Echos
- IIA AV : Immofinanz 2Q 2014/15 Expected to Bring Positive Earnings
- DEC FP : JCDecaux to Buy Continental Outdoor to Expand in Africa
- MC FP : LVMH Moët Said to Sign Deal for Bond Movie ‘Spectre’: NYT
- NOK1V FH : Nokia may sell its India plant at Sriperumbudur in parts; Hilco appointed to conduct due diligence
- NUO NA : Nutreco Says Cargill Due Diligence Request Should Be Reasonable
- PUM GY : Puma Owner Said to Have Explored Sale to Middle Eastern Funds
- REP SM : Repsol to Buy Talisman Energy for $8 Per Common Share in Cash
- ROG VX : Roche Begins Sale of PCR Molecular Diagnostic System
- AM3D GY : SLM Receives eight orders during Euromold 3D printing fair (ask for more details if interested in 3D Printing)
- STAN LN : StanChart to Sell Consumer Finance Units to China Travel, Pepper
- TIT IM : Oi Open to Discuss Merger With Tim If Proposal Made: Sole
- DG FP : France Motorways Owners May Meet With Hollande Soon: Reuters
- VOD LN : Vodafone Gets Loan From Canada Agency to Buy BlackBerry Gear

>>> Brokers Upgrades & Downgrades - 16th of December 2014

>>> Up
*FONCIERE DES MURS RAISED TO HOLD VS SELL AT SOCGEN
*MBANK RAISED TO BUY VS NEUTRAL AT CITI
*WERELDHAVE RAISED TO BUY VS HOLD AT SOCGEN

>>> Down
*BPOST CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY
*BRITISH LAND CUT TO HOLD VS BUY AT SOCGEN
*DERWENT LONDON CUT TO HOLD VS BUY AT SOCGEN
*GEA GROUP CUT TO SELL VS NEUTRAL AT UBS
*ALSTRIA OFFICE REIT CUT TO HOLD VS BUY AT SOCGEN
*MEYER BURGER CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*STANDARD LIFE CUT TO HOLD AT DEUTSCHE BANK

>>> PT Changes


>>> Initiation
*CHR HANSEN RATED NEW BUY AT UBS, PT DKK300
*GRIFOLS RATED NEW OVERWEIGHT AT BARCLAYS, PT EU43
*HELLA RATED NEW BUY AT CITI, PT EU43

>>> Call
>> Stock
*DRILLISCH, BASF ADDED TO BANKHAUS LAMPE’S LARGE CAP ALPHA LIST
*SALZGITTER TAKEN OFF BANKHAUS LAMPE’S LARGE CAP ALPHA LIST
*UNITED INTERNET TAKEN OFF BANKHAUS LAMPE’S LARGE CAP ALPHA LIST

Le Figaro : Why CGG said no to Technip

Jean-Georges Malcor, head of CGG, defends its strategy, despite the collapse of 29% of the course.
Advertising

Technip closed Sunday evening the folder CGG . The group had tried to convince the beginning of November specialist seismic oil with a proposed takeover bid to 8.30 euros per share, including the boss of Technip , Pilenko , again Monday defended the strategic interest. Jean-Georges Malcor , CEO of CGG, says Le Figaro the reasons for its refusal, on market turbulence bottom. The stock has lost 29.3% Monday , while Technip gained 1%.

Le Figaro. - Why CGG she refused Technip's redemption proposal?

Jean-Georges Malcor. - We rejected the proposal to Technip for reasons primarily industrial. CGG is a geosciences company whose entire strategy in four years is based on three pillars, our three business lines, such as equipment, data acquisition, including through our fleet of seismic vessels, and imaging and interpretation. This triptych became our DNA. Customers validate this model. Or, Technip has made clear that he wanted the separation of data acquisition business. It was a project which challenged the integrated model of CGG obviously unacceptable.

Since November 10, when the proposal was put on the table, Technip he has not changed on that?

Not. Therefore, no compromise could be found. Technip is committed to us in an unsolicited approach. CGG, it must be remembered, is not for sale. But we discussed this episode with an open mind. Our refusal is not dogmatic. CGG has demonstrated in the past its reactivity and pragmatism. But the board and I have considered that this project does not create value for our group.

Technip believes that your data acquisition activities outside complement its own and create a range of interesting services. This will he just seems?

I agree Pilenko when he explains that seismic activities are key. For our customers, knowledge of hydrocarbon reservoirs is strategic. The interest of Technip our sole GRR division validates the Group's strategy for four years! But I consider for my part, like Schlumberger, this also involves mastering the art of acquisition. One could consider other forms of commercial cooperation between our two groups like the alliances or joint ventures that we have with others and work very well.

Technip said he has social consequences of your project?

Not. Never. But we were convinced that the cost synergies promised by Technip could be achieved without consequences on employment. 400 to 500 jobs threatened us appeared in France in the acquisition division.

The method of Technip and her boss she shocked you?

Pilenko and I, we know each other very well. I think the use wished we led discussions upstream rather than receive a pre-offer. That said, the episode is closed and the debates that we had remained very professional.

The creation of a French champion does she tries not you?

I am not unsympathetic to the argument. Technip and CGG already are, each in its field, world leaders. But such a project can not be conceived by amputating one of two groups of one of his legs.

CGG is it alone in a position to face a depressed market by the oil price collapse?

The transformation plan that we consider unfold over three years has been accelerated and has been completed in fourteen months. CGG has with Sercel and GGR two divisions resilient cycle trough. CGG has reduced its fleet, lowered costs and was put in a position to face a very difficult market . The context pushes customers to cut their exploration budgets, but they do not reduce to zero as long seismic expenses, which will be the first segment to leave.

Some investors doubt that you can escape a capital increase. And the share price fell sharply on Monday ...

They already felt at the end of the first quarter and then the second, third ... They were wrong and we maintain that we come out of this cycle of low on our own. We renegotiated our debt maturities. We will continue our debt reduction efforts as appropriate by asset disposals. As in, the reaction seems mechanics. It does not surprise us.

Le Figaro : Pourquoi CGG a dit non à Technip

Jean-Georges Malcor, le patron de CGG, défend sa stratégie, malgré l'effondrement de 29 % du cours.

Technip a refermé dimanche soir le dossier CGG. Le groupe avait tenté début novembre de convaincre le spécialiste de la sismique pétrolière avec un projet d'OPA à 8,30 euros par action, dont le patron de Technip, Thierry Pilenko, a de nouveau défendu lundi l'intérêt stratégique. Jean-Georges Malcor, patron de CGG, explique au Figaro les raisons de son refus, sur fond de turbulence boursière. Le titre a perdu lundi 29,3 %, tandis que Technip gagnait 1 %.

Le Figaro. - Pourquoi CGG a-t-elle refusé la proposition de rachat de Technip?

Jean-Georges Malcor. - Nous avons refusé la proposition de Technip pour des raisons avant tout industrielles. CGG est une société de géosciences dont toute la stratégie depuis quatre ans est fondée sur trois piliers, nos trois métiers, que sont les équipements, l'acquisition de données, notamment au travers de notre flotte de navires sismiques, et l'imagerie et leur interprétation. Ce triptyque est devenu notre ADN. Les clients valident ce modèle. Or, Technip a clairement indiqué qu'il souhaitait la séparation du métier d'acquisition de données. C'était un projet qui remettait en cause le modèle intégré de CGG, évidemment inacceptable.

Depuis le 10 novembre, date à laquelle la proposition a été mise sur la table, Technip n'a-t-il pas évolué sur ce point?

Non. C'est pourquoi aucun compromis ne pouvait être trouvé. Technip s'est engagé à notre égard dans une démarche non sollicitée. CGG, faut-il le rappeler, n'est pas à vendre. Mais nous avons abordé cet épisode avec l'esprit ouvert. Notre refus n'est pas dogmatique. CGG a fait la preuve par le passé de sa réactivité et de son pragmatisme. Mais le conseil d'administration et moi-même avons considéré que ce projet n'était pas créateur de valeur pour notre groupe.

Technip estime que vos activités hors acquisition de données complètent les siennes et créeraient une gamme de services intéressante. Cela vous semble-t-il juste?

Je rejoins Thierry Pilenko quand il explique que les activités sismiques sont clés. Pour nos clients, la connaissance des réservoirs d'hydrocarbures est stratégique. L'intérêt de Technip pour notre seule division GRR valide la stratégie du groupe depuis quatre ans! Mais je considère pour ma part, à l'instar de Schlumberger, que cela passe aussi par la maîtrise du métier de l'acquisition. On pourrait envisager d'autres formes de coopérations commerciales entre nos deux groupes à l'image des alliances ou des coentreprises que nous avons avec d'autres acteurs et qui fonctionnent très bien.

Technip vous a-t-il précisé les conséquences sociales de son projet?

Non. Jamais. Mais nous avions la conviction que les synergies de coûts promises par Technip ne pouvaient se réaliser sans conséquences sur l'emploi. 400 à 500 emplois nous paraissaient menacés en France dans la division acquisition.

La méthode de Technip et de son patron vous a-t-elle choqué?

Thierry Pilenko et moi, nous nous connaissons très bien. Je pense que l'usage aurait voulu que nous menions des discussions en amont plutôt que de recevoir une pré-offre. Cela dit, l'épisode est clos et les débats que nous avons eus sont restés très professionnels.

La création d'un champion français ne vous tente-t-elle pas?

Je ne suis pas insensible à l'argument. Technip et CGG sont déjà, chacun dans son domaine, des leaders mondiaux. Mais un tel projet ne peut se concevoir en amputant un des deux groupes de l'une de ses jambes.

CGG est-elle, seule, en situation d'affronter un marché déprimé par l'effondrement des prix du pétrole?

Le plan de transformation que nous envisagions de dérouler sur trois ans a été accéléré et aura été achevé en quatorze mois. CGG possède avec Sercel et GGR deux divisions résilientes en creux de cycle. CGG a réduit sa flotte, a abaissé ses coûts et s'est mis en situation de faire face à un marché très difficile. Le contexte pousse nos clients à couper dans leurs budgets d'exploration, mais ils ne réduisent pas pour autant à zéro leurs dépenses de sismiques, qui sera le premier segment à repartir.

Certains investisseurs doutent que vous puissiez échapper à une augmentation de capital. Et le cours de l'action a lourdement chuté ce lundi…

Ils le pensaient déjà à la fin du premier trimestre, puis au deuxième, au troisième… Ils avaient tort et nous maintenons que nous sortirons de ce bas de cycle par nos propres moyens. Nous avons renégocié nos échéances de dette. Nous poursuivrons nos efforts de désendettement le cas échéant par des cessions d'actifs. Quant au cours, la réaction me paraît mécanique. Elle ne nous a pas surpris.

>>> Asian Update

Asian Mid-session Update: China HSBC Flash PMI falls into contraction for the first time in 8 months


***Economic Data***
- (CN) CHINA HSBC DEC FLASH MANUFACTURING PMI: 49.5 V 49.8E (7-month low, 1st contraction in 7 months)
- (CN) CHINA NOV ACTUAL FOREIGN DIRECT INVESTMENT (FDI) Y/Y: +22.2% V +1.1%E; First rise in 5 months
- (JP) JAPAN DEC PRELIM MARKIT/JMMA MANUFACTURING PMI: 52.1 V 52.0 PRIOR
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 110.2 v 110.4 prior
- (RU) RUSSIA CENTRAL BANK (CBR) RAISES ONE-WEEK AUCTION RATE BY 650BPS TO 17.00%; Cites rising currency devaluation and inflation risks- EMERGENCY MEETING

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 -1.8%, S&P/ASX -0.5%, Kospi -0.5%, Shanghai Composite +0.7%, Hang Seng -1.2%, Mar S&P500 +0.2% at 1,987

***Commodities/Fixed Income***
- Feb gold -0.9% at $1,196, Jan crude oil -0.5% at $55.61/brl
- GLD: SPDR Gold Trust ETF daily holdings fall 2.4 tonnes to 723.4 tonnes
- (CN) PBoC won't conduct open market operations (OMO) in today's session (6th consecutive halt)
- JGB: (JP) Japan's MoF sells ¥2.49T in 0.1% (0.1% prior) 5-yr notes; Avg yield: 0.083% v 0.160% prior; Bid to cover: 4.24x v 3.70x prior
- JGB: Japan's 5-yr JGB yield falls to record low 0.06% following MoF auction

***Market Focal Points/Key Themes/FX***
- Tokyo stocks are leading the decline once again as the reversal in overextended Yen weakness continues to highlight the general risk-off environment. USD/JPY fell to within 10pips of its 3-week lows near 117.30, while the latest 5-year JGB auction saw very strong demand, taking the yield on the 5-yr to a record 0.06%. BOJ's Tankan survey of corporations revealed inflation expectations for 1-yr at 1.4% v 1.5% prior, 3-yr unchanged at 1.6%, and 5-yr unchanged at 1.7%. Separately, a note out of Moody's said the weekend parliament elections results were important for credit standing, but strong reforms are still required to make Abenomics successful.

- China flash manufacturing PMI contracted for the first time in 7 months, even though employment decrease slowed and new export orders increased faster. Disinflationary factors were increasingly more apparent and weighed on the index, with output and input prices decreasing at a faster rate. HSBC economist said about as much, stating "rising disinflationary pressures, which fundamentally reflect weak demand, warrant further monetary easing in the coming months." Separately, November FDI rose for the first time in 5 months, primarily boosted by the 7.9% YTD increase in the services component.

- Reserve Bank of Australia December meeting minutes offered mainly familiar tones for policy outlook, noting rate stability would be the most prudent course but also acknowledging increasing probability of further easing being priced in the fixed income markets. RBA also reiterated further fall in A$ is needed for the economy, and inflation outlook is consistent with the 2-3% target range. Out of New Zealand, the Finance Ministry gave up on posting a budget surplus in FY14/15 announcing it will not engage in slash and burn spending cuts to achieve surplus target. Fin Min English also noted dairy prices would fall further in the next few months but then recover in 2015.

- Russian Central Bank shocked the Ruble to a 10% spike after a surprise 650BPS rate hike to curb inflationary pressures from the weaker currency and prevent more outflows. USD/RUB fell as low as RUB60 in the Asian session after collapsing in the US hours, tracking the free-falling oil prices to mid $50's/brl.

***Equities***
US markets/ADRs:
- TLM: Board said to meet to review takeover offer from Repsol; Repsol's board said to have approved launching full takeover bid for Talisman - financial press; +19.9% afterhours
- FCEL: Reports Q4 -$0.02 v -$0.05 y/y, R$54.4M v $53Me; +6.5% afterhours
- BA: Increases share repurchase authorization to $12B (approx 13.7% of market cap), Raises dividend 25% to $0.91 from $0.73; +2.4% afterhours
- WHR: Guides initial FY15 Adj $14.00-15.00 v $14.57e; Cuts FY14 $10.90-11.10 v $11.67e (prior guided $11.50-12.00); +1.4% afterhours
- LLY: Increases quarterly dividend 2% to $0.50 from $0.49; -0.2% afterhours; +0.5% afterhours
- ESRX: Reaffirms FY14 $4.86-4.90 v $4.88e; approves additional 65M share buyback program (9% of shares outstanding); initiates CFO transition process; flat afterhours
- ADM: Olam to acquire ADM's worldwide cocoa business for $1.3B; flat afterhours
- KO: Guides FY14 currency neutral EPS growth expected to be 4% to 5% currency headwind of 7%; -0.2% afterhours
- PAY: Reports Q4 $0.44 v $0.41e, R$491M v $485Me; -0.6% afterhours
- ELY: Raises FY14 guidance to $0.17-0.19 v $0.18e (prior $0.15-0.18); Maintains Rev guidance of about +6%; Guides FY15 Rev +2-3%; -0.6% afterhours

Notable movers by sector:
- Consumer Discretionary: China Dongxiang Group 3818.HK +2.1% (FY14 guidance); Qantas Airways QAN.AU +4.9% (Nov Op result; WTI crude lower); Recall Holdings REC.AU -3.7% (Iron Mountain maintains bid); Skymark Airlines 9204.JP +21.6% (to start code share with ANA and JAL)
- Materials: BHP Billiton BHP.AU -3.2% (demerger plans in doubt due to iron ore, oil prices)
- Industrials: China Communications Construction 601800.CN +4.9 % (in talks for projects in Pakistan); China State Construction 601668.CN +0.3% (Nov new contract result); Wuhan Golden Laser 300220.CN +3.7% (private placement)

WSJ Dalian Wanda Commercial Properties Raises $3.7 Billion in IPO

Dalian Wanda Commercial Properties Raises $3.7 Billion in IPO
Offer Prices Near High End of Expected Range

HONG KONG—Dalian Wanda Commercial Properties Co., which is controlled by Chinese billionaire Wang Jianlin, has raised US$3.7 billion in a Hong Kong initial public offering after pricing the deal near the high end of an indicative price range, according to people familiar with the situation Tuesday.

Dalian Wanda Commercial’s IPO is now the largest-ever listing by a real-estate company globally, besting the 2010 debut of Singapore’s Global Logistic Properties Ltd. , according to Dealogic. Last month, Paramount Group Inc. raised US$2.6 billion in the U.S.

Dalian Wanda Commercial, the property arm of Dalian Wanda Group, which bought cinema chain AMC Entertainment Holdings two years ago, sold 600 million shares at 48 Hong Kong dollars (US$6.19) a share, near the high end of a price range of HK$41.8 to HK$49.6 a share, the people said.

Advertisement

Including the listings of Dalian Wanda Commercial and BAIC Motor Corp., a Chinese car maker that priced its US$1.4 billion a few days ago, Hong Kong has climbed up to the second spot globally as far as global listing destinations from the fourth position previously. The New York Stock Exchange holds the top spot and Hong Kong is now followed by the Nasdaq Stock Market and the London Stock Exchange.

The Dalian Wanda Commercial listing comes after China’s central bank cut interest rates last month. Investors expect the move will ease pressure on heavily-indebted property companies, whose share prices rose after rates were cut. Dalian Wanda Commercial, which has 178 projects in 112 cities and 29 provinces across China, had a debt-to-equity ratio of 87.8% at the end of June, according to its listing prospectus.