Sun Hung Kai Financial (SHKF) reported that it maintained its 00682-HK neutral rating but lowered its target price from HK $5.98 to HK $4.35, equivalent to four times forecast earnings for FY09 and a discount of 6 per cent to the market price.

SHKF pointed out that the placement removed the uncertainty of the stock and enhanced the company's financial flexibility. But while free cash flow turned positive in the first half of 2009, funding activity remained frequent, which could reignite concerns about the company's ability to generate cash flow.

Chaoda modern agriculture fell 15.51 per cent to HK $4.52 yesterday.