[金融地产] 20080730-HSBC-Central European Developers

Downgrading Orco to Underweight and
Echo to Neutral (V), maintaining GTC at
Overweight (V)

􀀗 The market continues to push real
estate sector valuations lower on the
deteriorating outlook for office asset
prices and the declining level of activity
􀀗 We agree with this view: we are reducing
our pipeline forecasts, increasing our
yield estimates and expecting write-offs
on property revaluations
􀀗 We are downgrading Orco and Echo, on
potential net losses, from Neutral to
Underweight and from Overweight to
Neutral (V), respectively; we think GTC
is less likely to disappoint and we
remain Overweight (V)