Hong Kong stocks fell as concerns about China's control of property investment

Hong Kong stocks fell as concerns about China's control of property investment overshadowed the optimism of a global recovery after the U.S. economy expanded faster than expected.

China Overseas Land & Investment SA, controlled by the ministry of nation building, slid 1.4 percent. Li & Fung Ltd., the largest supplier of Wal-Mart Stores Inc., rose 2.3 percent. Changsha Zoomlion Heavy Industry Science & Technology Development Co., a manufacturer of construction equipment, rose 8 percent in its debut.

"It helps us to see signs that the U.S. economic outlook appears brighter in the short term, but how long this can be sustained remains an issue," said Castor Pang, research director in Hong Kong Cinda International Holdings Ltd. "The markets tend to move sideways toward the end of the year. more policy tightening may occur at any time. Developers are particularly under selling pressure."

The Hang Seng index lost 0.6 percent to close at 22,902.97, after rising to 0.5 percent. The Hang Seng China Enterprise Index called H shares of Chinese companies fell 0.8 percent to 12,516.52.

The Hang Seng index has rebounded 21 percent lower this year on May 25 on speculation that growth in income of companies to overcome concerns about the pace of U.S. economic recovery and China's measures to curb rising property prices. Participation in the trade of arms in an average 14.4 times estimated earnings, compared with 12.7 times on 25 May.

China Overseas Land fell 1.4 percent to $ 14.60 in Hong Kong. Hang Lung Properties Ltd., a real estate developer in Hong Kong and China, fell 1.5 percent, to 36.25 Hong Kong dollars.

Foreign investment property

The Commerce Ministry has ordered local authorities to stop the passage of some foreign-owned investments to curb speculative buying, said in a statement that was released November 22 on its website yesterday.

Li & Fung advanced 2.3 percent to $ 44.25 in Hong Kong, the biggest gain in the Hang Seng index. Techtronic Industries Co., maker of Hoover vacuum cleaners and Ryobi power tools, rose 0.6 percent to $ 10.60 in Hong Kong.

The U.S. economy grew at an annual rate of 2.6 percent revised in the third quarter, compared with an estimate of 2.5 percent issued last month, a Commerce Department report showed yesterday.

Trinidad Ltd. gained 3.4 percent to HK $ 8.26 after it agreed to buy Cerruti Holdings by as much as € 52.6 million ($ 69 million). Cerruti operates licensing and distribution of men's clothing with the same brand.

Both Trinidad and Li & Fung Ltd. are subsidiaries of closely held Li & Fung group.

Mixed debuts

Zoomlion rose 8 percent to $ 16.18 in Hong Kong. The company sold 869.6 million shares at HK $ 14.98 each, raising net proceeds of HK $ 12,500,000,000 ($ 1.6 billion) in an initial public offering, according to a statement.

Hengxin Technology Ltd. declined 1.3 percent to 2.22 HK dollars in its debut. The supplier of coaxial cables used in mobile communications sold 98.7 million shares at HK $ 2.25 each, raising net proceeds of HK $ 95 million in a sale in Hong Kong initial share.

United Energy Group Ltd. plunged 16 percent to 1.51 Hong Kong dollars after the investment holding company said it will not proceed with a share placement had been considering.

Six stocks fell for each that rose among the 45 components of the indicator. Their future slipped 0.9 percent to 22.894.