New World Development (NWD) may need a debt-reduction plan or cash injection from the billionaire Cheng family to overcome a liquidity squeeze and assuage stock investors, according to analysts at HSBC Holdings.
The company’s shares have lost 37 per cent, or HK$6.4 billion (US$821.7 million) in market value, since late November after a management shake-up failed to calm investors. While the shares gained 6.3 per cent in a late rally on Friday, they remained near a record-low of HK$4.04 reached on January 25. HSBC on Thursday cut its stock-price target for a second time this year on a poor earnings outlook.
The developer, which is controlled by the family of chairman Henry Cheng Kar-shun, this week set the price of its prime State…
