CapitaMalls Asia’s (JS8.SG) $747.2 million investment in Shanghai mall cum office development doing little to generate keen investor interest, says Dow Jones.

Stock flat at $2.12 in light trade. Company will buy 66% stake in upcoming complex for $281 million, with remaining amount comprising development cost. Project expected to be completed by 2015, will be funded by debt, equity.

“The price appears fair and enables CMA to strengthen its foothold in China, augment its Tier-1 city exposure and move towards its 40% target asset allocation in China from the current 32%,” says Deutsche Bank, which has Buy call with $2.53 target.

Still, as project won’t be earnings-accretive any time soon, impact on share price not expected to be significant in near term. 20-day moving average, last at $2.17, expected as resistance.

Citigroup upgrades OCBC (O39.SG) to Buy from Sell, raises target to $10.51 from $9.10 on target 14.8x 2011E P/E, 1.78x P/B; house more positive on Singapore banks after underperformance vs regional peers, STI, says Dow Jones.

Citi says potential 2011 headwinds look increasingly priced in.

On 3Q results, Citi says “OCBC deserves credit for delivering strong loan growth and holding net interest margins in a challenging low rate environment. We are still concerned that short-term SGD rates falling to fresh lows in recent weeks risks further competition and margin pressure in 2011E,” but OCBC's strong 3Q justifies recent outperformance.

Adds despite strong 3Q loan growth, OCBC remains comfortable with funding, management hopes to keep NIMs in 1.95%-2.00% band; NPL ratio of 1.1% lowest since first reported in 1997, may fall further. Notes Great Eastern continues to deliver strong premiums, new business embedded value growth, "and there are ample cross-sell opportunities for Bank of Singapore."

Shares +1.8% at $9.58.