Hong Kong stocks fell as rising consumer inflation and housing prices in China stoked concern the country will act further to rein in its economy. The city’s developers pared losses after a government land sale.
Most Hong Kong stocks rose, lifting the Hang Seng Index to its longest winning streak in 13 months, amid speculation economic growth in China can weather measures to curb Chinese property prices and Europe’s debt crisis.
In December, China Machinery Engineering Corp., a builder of power stations, went public in Hong Kong thanks to five Chinese government-owned companies that bought almost a third of the $575 million offering. The stock has since fallen 24 percent.
Sany Heavy Industry Co. and Citic Securities Co. are pushing ahead with share sales in Hong Kong, where companies have canceled or delayed a record $14 billion of equity offerings this year as stock markets tumble.
Binay Chandgothia , who oversees about $2.2 billion as chief investment officer at Principal Global Investors (Hong Kong) comments on stocks amid growing concern about the safety of Japan’s nuclear plants damaged by the country’s worst earthquake on record.