Expert Shi Ping: Why Does Prada Love Hongkong?

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The company says this is mainly because it is adjacent to the world's fastest growing luxury market, the mainland of China.

But Prada has only 14 stores in mainland China, not as many as in a city in Tokyo.

The company's massive expansion plan, which is the main reason for issuing shares, aims to fill the gap in its global network (not China). The company has not opened stores in any city in Stockholm, Barcelona, Brussels or Russia or Brazil.

After all, opening stores to all corners of China is meaningless.

The high tax rate here means that a large portion of the Chinese luxury goods are purchased overseas.

If the executives of the company are completely honest, they will admit that IPO is located in Hongkong because it has the highest valuation of conspicuous assets.

The auction house Christie's s broke 36 world records earlier this month. A 8302 square foot house in Taiping mountain, Hongkong, Hongkong, 10 (10 Pollock) s Path, Hongkong, sold a record HK $800 million (103 million US dollars) last week.

If the price of Prada is priced at the middle of the guidance price range on Friday, its stock price forecast will be 24 times this year, far more than its competitors in Paris, London and Milan.

Prada is the real "conspicuous asset".

Unlike most European competitors, the company is purely for the high-end luxury market.

In addition, it will become the only Italian company in Hongkong and the only large luxury company.

The oversubscription of institutional investors has reached 5 times, indicating that these investors choose to ignore Prada's network expansion plan, though this plan will weaken profit margins.

Their desire is essentially the same as the ladies and girls standing in front of the Prada flagship store in Guangdong road. They are all thirst for flashy gadgets.

You have bought Prada's bag; now go and buy its stock.