Sept. 18 (Bloomberg) -- Hong Kong’s Hang Seng Index is set to fall back below the 21,000 level in the closing weeks of this month as investors raise cash to buy into initial share sales, according to DMG & Partners Securities Pte.

The gauge climbed 1.7 percent to 21,768.51 yesterday, its highest close since Aug. 11, 2008. The Hang Seng has closed above the 21,000 mark just five times in September.

Four companies are expected to debut in Hong Kong in the next two weeks, raising about HK$29.7 billion ($3.8 billion). The biggest of the four initial public offerings will be that of Metallurgical Corp. of China Ltd., which has raised about HK$18.2 billion. The state-owned construction and engineering company is expected to start trading on Sept. 24.

“The IPOs will siphon liquidity off the market,” James Lim, an analyst at DMG & Partners Securities Pte in Singapore, said in a telephone interview. “Trading volumes in Hong Kong have been declining. That’s limiting the upside.”

The Hang Seng Index has climbed 92 percent from a four- month low on March 9 as stimulus measures revived economies around the world. Average daily turnover in Hong Kong has fallen to HK$61.9 billion this month, compared with the HK$67.3 billion from the March low through to the end of August.

Sinopharm Group Co., China’s largest drug distributor, will list on Sept. 23, according to data compiled by Bloomberg. China Lilang Ltd., a maker of men’s clothing and accessories, will start trading on Sept. 25. Peak Sport Products Co., an athletic- shoe maker, will debut on Sept. 29.

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net.

Last Updated: September 17, 2009 20:30 EDT