Dec. 23 (Bloomberg) -- Hong Kong stocks fell, reversing gains, as concerns about China’s scrutiny of property investment overshadowed optimism of a global recovery after the U.S. economy expanded faster than estimated.
China Overseas Land & Investment Ltd., controlled by the nation’s construction ministry, slid 1.4 percent. Li & Fung Ltd., the biggest supplier to Wal-Mart Stores Inc., advanced 2.3 percent. Changsha Zoomlion Heavy Industry Science & Technology Development Co., a maker of construction machinery, jumped 8 percent on its debut.
“It helps to see signs that the U.S. economic outlook looks to be brighter in the short term, but how long this can be sustained remains as a question,” said Castor Pang, Hong Kong-based research director at Cinda International Holdings Ltd. “Markets are likely to move sideways toward the year end. Further policy tightening may take place anytime. Developers are particularly under selling pressure.”
The Hang Seng Index lost 0.6 percent to close at 22,902.97, after rising as much as 0.5 percent. The Hang Seng China Enterprises Index of so-called H shares of Chinese companies declined 0.8 percent to 12,516.52.
The Hang Seng Index has recovered 21 percent from this year’s low on May 25 on speculation that growth in corporate earnings will overcome concerns about the pace of the U.S. economic recovery and China’s steps to curb rising property prices. Shares in the gauge trade at an average 14.4 times estimated earnings, compared with 12.7 times on May 25.
China Overseas Land slid 1.4 percent to HK$14.60. Hang Lung Properties Ltd., a developer of real estate in Hong Kong and China, fell 1.5 percent to HK$36.25.
Foreign Property Investments
The Commerce Ministry ordered local authorities to halt the approval of some foreign property investments to curb speculative buying, it said in a Nov. 22 statement that was posted on its website yesterday.
Li & Fung advanced 2.3 percent to HK$44.25, the biggest gain on the Hang Seng Index. Techtronic Industries Co., maker of Hoover vacuum cleaners and Ryobi power tools, rose 0.6 percent to HK$10.60.
The U.S. economy grew at a revised 2.6 percent annual rate in the third quarter, compared with a 2.5 percent estimate issued last month, a Commerce Department report showed yesterday.
Trinity Ltd. gained 3.4 percent to HK$8.26 after agreeing to buy Cerruti Holdings for as much as 52.6 million euros ($69 million). Cerruti operates licensing and distribution of menswear with the same brand name.
Both Trinity and Li & Fung Ltd. are affiliates of closely held Li & Fung Group.
Zoomlion climbed 8 percent to HK$16.18. The company sold 869.6 million shares at HK$14.98 each, raising net proceeds of HK$12.5 billion ($1.6 billion) in an initial public offering, according to a statement.
Hengxin Technology Ltd. declined 1.3 percent to HK$2.22 on its debut. The supplier of coaxial cables used in mobile communications sold 98.7 million shares at HK$2.25 apiece, raising net proceeds of HK$95 million in a Hong Kong initial share sale.
United Energy Group Ltd. slumped 16 percent to HK$1.51 after the investment holding company said it won’t proceed with a share placement it had been considering.
Six stocks fell for each that rose among the 45 constituents of the gauge. Its futures slid 0.9 percent to 22,894.
To contact the reporter on this story: Hanny Wan in Hong Kong at email@example.com.
To contact the editor responsible for this story: Nick Gentle at firstname.lastname@example.org.