still sound. We believe the wind-up petition against GloriousProperty (845 HK, NR) is company-specific, as the company has substantially sloweddown its development, with FY14 contracted sales less than one-third of its 2011peak, and a staggering net gearing of 135% as of December 2014, which took half ofthe contracted sales to cover its interest expenses. On the contrary, most otherdevelopers have speeded up development, while managing their net gearing at~70% on average. In addition, with or without the recent market volatility, webelieve 2015 will be a year of recovery for property from its 14-month ASP declineand inventory fear. Interest rate cuts, more favourable mortgage terms and therelaxation in property measures should favour developers’ contracted sales, cashcollection and net gearing improvement, in our view. Therefore, even if some smalldevelopers get burnt, we expect to see more M&A deals, rather than fire sale ofproperty, especially when the land market remains hot.