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.
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.
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.
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.
Australian banks posted the best risk-adjusted returns among global peers in the past 10 years, attracting investors with rising earnings and the highest dividend yields of the world’s biggest lenders.
Hong Kong stocks rose for a third day after slower-than-forecast U.S. economic growth signaled record stimulus may be maintained and amid speculation that the recent drop in the city’s shares has been overdone.
Asian stocks rose, with the regional equities gauge on course to rebound from its biggest drop in two weeks, as a weakening yen pushed Japan’s Topix index to a seven- week high and industrial companies advanced.