New World Shares Give Up Gains From Rally on Blackstone Talks

Hong Kong builder New World Development Co. has fallen back in the stock market to where it traded before news last week that Blackstone Inc. was in talks to become its single largest shareholder, as questions mount about the path forward.

The developer’s shares in Hong Kong fluctuated Tuesday after sliding 12% Monday in the worst drop in ten months. They’re down about 1% from the close last Wednesday, erasing gains from Thursday and Friday that came after people familiar with the matter said Blackstone would be able to restructure the embattled company if a deal went through.