Daiwa downgraded its 0682.HK rating to weaker than the broader market from buy, saying that while it remained confident in its business model and profit outlook, liquidity concerns would resurface when the company's guaranteed senior bonds matured in February 2010. Daiwa said it should have enough money to cope with early redemption of convertible bonds on May 8 and could fine-tune its capital expenditure plan without a share placement if there were any shortfalls in guaranteed senior bonds. Daiwa lowered its six-month target price to HK $4.00 from HK $6.75, which represents a price-to-earnings ratio of 2.5 times earnings per share based on the bank's earnings forecast for fiscal 2010. This is in line with the expected price-to-earnings ratio when shares were at their lowest levels in October 2008 and March 2009.

Chaoda modern agriculture fell 0.68 per cent to HK $4.41 yesterday.