Huaneng Power International Inc.’s U.S.-listed stock is trading at the biggest discount in four months versus Hong Kong, where the stock surged yesterday on prospects an economic rebound will lift electricity consumption.
China’s stocks fell the most in 10 weeks on speculation the government won’t ease monetary policy as quickly as anticipated and after Citigroup Inc. said the economic growth slowdown will extend into next year.
Most Hong Kong stocks fell after Citigroup Inc. cut its forecast for economic growth in China next year, overshadowing optimism that stimulus measures by the Federal Reserve will boost U.S. demand for Asian exports.
China’s economy probably grew the least in almost two years last quarter, contributing to a global weakening that Premier Wen Jiabao confronts with more limited scope for policy response than during the 2008 world recession.
China’s benchmark stock index fell for the first time in three days as banks declined after policy makers boosted the amount of money that lenders must set aside, overshadowing gains for consumer staple producers.