[R]7:00 PM Shanghai, 7:00 AM New York – Stocks in Shanghai and Hong Kong edged lower after investors worried that prices may be ahead of fundamentals. China State Construction Engineering filed to raise as much as $7.3 billion. Mining related stocks closed lower.[/R]

Hang Seng index in Hong Kong decreased 0.64 to 19,501.73 and CSI 300 index in China lower 51.29 or 1.43% to 3,539.83.

China State Construction Engineering filed to raise as much as 50 billion yuan in public offering that will sell 12 billion shares between 3.96 yuan and 4.18 yuan a share.

The company will use the proceeds for general corporate purposes and also expand into residential construction at the land reserve of 34.3 million square meters that it controls. The company at the filing price range is valued at 125 billion or $17 billion based on 51 times earnings of 2008.

The State Construction IPO will be the largest in two years after PetroChina raised nearly $9 billion of 67 billion yuan.

Gainers & Losers

Beijing Dalong Weiye Real Estate Development soared 9.6% to 16.04 yuan after the company planned to raise 800 million yuan in an offering to institutional investors according to media reports in Shanghai.

Shanghai Zhenhua Heavy Industry added 4% to 13.16 yuan after the crane to handle traffic at ports received $2.2 billion of orders from Spain.

Mining companies edged lower after investors worried that stocks in the sector are ahead of fundamentals. Western Mining, Jiangxi Copper, China Coal and Shenhua Energy and Aluminum Corp of China declined between 1% and 5%.

The news of the public offering of China State Construction lifted stocks of securities dealers. Citic Securities added 1.1% and Northeast Securities increased 4%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 256.70 or 2.73% to 9,652.02, Hang Seng index in Hong Kong decreased 0.64 or 0.00% to 19,501.73 and CSI 300 index in China lower 51.29 or 1.43% to 3,539.83. ASX 200 index in Australia increased 0.40 or 0.01% to 4,050.70. The FTSE Bursa KL Composite index in Malaysia closed lower 4.55 or 0.40% to 1,134.70.

The Kospi Index in South Korea increased 10.48 or 0.71% to close at 1,488.99. SET index in Thailand closed lower 3.84 or 0.63% to 609.83 and JSE Index in Indonesia increased 40.20 or 1.91% to 2,146.55. The Sensex index in India decreased 128.52 or 0.85% to 15,062.49.