NWD (17 HK): Edging Towards A Bailout

• I don’t deliberately set out to knock New World Development (17 HK); just that the newsflow/headlines speak volumes.

• Apparently, after months of negotiation, Blackstone has walked away from a proposed tie-up with NWD. Reportedly other investors are still in the mix.

• Any bailout, should one occur, which has been rumoured for, like, forever, is potentially less dilutive at today’s share price. It’d still be a bold move to load up here.

The Trade.

• I’d still avoid NWD.

• There was a time when Beijing might have arranged help for a distressed HK tycoon.

• Hong Kong developers no longer carry the same clout.

This insight is labelled bearish as I’m not at all bullish here.