Guan
Tao, head of the balance of payments department at the State
Administration of Foreign Exchange, attended State Council Information
Office press conference this morning and said that in view of the
monitoring indicators, it is not obvious for outflow trend of foreign
capital from China's real estate market. On the contrary, foreign
capital inflows in the first three quarters of the real estate industry
registered the highest level when compared to the corresponding period
in the past five years
CLSA lowers Beijing Ent Water (00371) to HK$6 CLSA cut its target price for Beijing Enterprises Water (BEW)(00371) by 8% to HK$6, and reiterated its "buy" rating. The research house said BEW's share price has dropped 14% in the last two trading days. First, the 2017 earnings results are below expectations. Second, management is guiding for 20-25% net profit growth for 2018, versus 30% in the past few years. Management now has a cautious approach to water PPP (public-private partnership) projects, which is not necessarily bad. CLSA cut its 2018-19 earnings forecasts by 19%. At the current level, it believes many of the negatives are already priced-in.
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