The initial positive response to Swire Pacific's announcement that it is considering the possibility of a separate listing of its wholly owned property unit quickly fizzled and some analysts have noted that such a move may actually put downward pressure on the Hong Kong conglomerate's valuation.
After rising 6.3% at opening on Tuesday -- the announcement of a potential spin-off came after the Hong Kong market closed on Monday -- Swire's class-A shares assumed a downward trend and finished a mere 1.1% higher. And yesterday the share price fell 0.7% in an otherwise rising market.
Arguably, a separate listing should be positive for the property unit itself, releasing hidden value and providing it with...
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