Zoomlion gains 8% in Hong Kong debut

Changsha Zoomlion Heavy Industry Science & Technology Development (000157.SZ, 1157.HK) climbed 8% on its Hong Kong trading debut with investors showing confidence in China’s demand for construction machinery, the Wall Street Journal reported. Zoomlion, which makes cranes, excavators and other infrastructure-related heavy machinery, said it expects a 76% increase in 2010 profit as China’s increasing urbanization rate stokes demand for apartment blocks as well as roads, bridges and railways. The company will use the US$1.68 billion raised in its Hong Kong initial public offering to finance the building of a new factory and develop new products.