Moving into a more stable neighbourhood

Beijing

A PRIME location is worth making sacrifices for. That may be why Dalian Wanda Commercial Property is accepting a modest valuation on its initial public offering in Hong Kong.

At a potential market capitalisation of US$25 billion, equivalent to 8.7 times forecast earnings for 2015, the price reflects well-founded worries about China's real estate market, and the company is raising a third less than it originally planned. The advantages of having an offshore pied a terre make it a reasonable compromise.