Changsha Zoomlion Heavy Industry
Science Technology Development Co. raised HK$13 billion ($1.7
billion) in a Hong Kong stock sale priced near the bottom of the
range, according to two people with knowledge of the matter.

China’s second-biggest maker of construction equipment sold
869.6 million shares at HK$14.98 apiece after offering them at
HK$13.98 to HK$18.98, said the people, who declined to be
identified before an announcement. The supplier of cranes, fire
trucks and cement mixers is already listed in Shenzhen, China.

Concern that China’s steps to curb inflation may damp
growth has cooled demand for new shares in Hong Kong and caused
the Hang Seng Index to fall 9 percent in about six weeks. China
Datang Corp. Renewable Power Co. today fell on its trading debut
after pricing its initial public offering at the bottom of the
range, while Huaneng Renewables Corp. this week scrapped a
planned sale.

Zoomlion’s Chairman and Chief Executive Officer Zhan Chunxin and Senior President Zhang Jianguo weren’t immediately
available for comment when called by Bloomberg News today. China
International Capital Corp., Goldman Sachs Group Inc., JPMorgan
Chase Co. and Morgan Stanley managed the sale.

China, Italy Plans

Zoomlion plans to use share-sale funds to build a factory
in China and to develop new products, according to its
prospectus. The company, based in Changsha, China, also intends
to open a research and assembly center in Senago, Italy.

Zoomlion fell 1.1 percent to 14.86 yuan at 1:39 p.m. in
Shenzhen trading. It’s gained 43 percent this year.

Companies have raised $79.4 billion selling shares in Hong
Kong so far this year, 43 percent more than the whole of last
year, according to data compiled by Bloomberg. AIA Group Ltd.
raised $17.8 billion in an IPO in October.

China’s central bank on Dec. 10 raised reserve ratios for
lenders to curb lending after consumer prices jumped 5.1 percent
in November.

The economy is undergoing a “soft landing,” Liu Mingkang,
chairman of the China Banking Regulatory Commission, said at a
forum in Beijing today.

To contact the reporter on this story:
Fox Hu in Hong Kong at
fhu7@bloomberg.net

To contact the editors responsible for this story:
Darren Boey at
dboey@bloomberg.net;
Neil Denslow at
ndenslow@bloomberg.net.