CRBL a victim of panic

CHINA Resources Beijing Land (CRBL) is mainly involved in land and property development and investment activities in Beijing.

It is 44.2 per cent held by China Resources Enterprises, the locally listed conglomerate.

Brokerage Merrill Lynch has placed a long-term accumulate tag on the stock, saying it has been unjustly victimised by the recent aversion to China plays.

The US brokerage said CRBL was not prone to liquidity problems despite prevailing tight credit.

'We estimate CRBL's cash on hand is about HK$1.3 billion, compared with total short-term loans and other payables of about HK$1.2 billion,' Merrill said.

It said the stock could rise by up to 20 per cent having lagged others recently.

'When compared with other red-chip counters whose financial conditions appear sound, the valuation of CRBL also appears attractive,' the brokerage said.

The principal risk CRBL faced was a mismatch on its balance sheet. The company's assets are mainly denominated in yuan.

Stewart Oldfield