CapitaLand to compete with upcoming shopping malls in Beijing

There are 13 upcoming shopping malls.

CapitaLand Retail China Trust is expected to benefit from the upcoming supply of mid- to high-end shopping malls in China's capital.

Citing Savills, OCBC Investment Research analyst Deborah Ong said there are 13 upcoming malls to debut this year. 

"Given CRCT’s track record of good operational performance, we expect their portfolio to do relatively well in the face of this fiercer competition. Nonetheless, this may place a damper on rental reversions in the nearer term," Ong said.

Meanwhile, the healthy demand indicators can spur growth in the group.

"According to the China’s National Bureau of Statistics, total retail
sales of consumer goods nationwide increased 10.1% YoY for the Jan-Apr 2017 period. According to Nielsen, China’s Consumer Confidence Index reached 110 points in 1Q17, the highest score since 2015," Ong noted.