Hong Kong - Changsha Zoomlion Heavy Industry Science & Technology Development Co got the Hong Kong Stock Exchange's approval for a share sale that could raise more than $1 billion, two people familiar with the matter said.

The company, which makes cranes, cement mixers and firetrucks, aims to start trading in Hong Kong by next month, said the people, who declined to be identified. JPMorgan Chase & Co and Morgan Stanley are among the banks managing the initial offering, they said.

Zoomlion, based in Changsha, Hunan province, in central China, has jumped 36 percent this year in Shenzhen Stock Exchange trading as the nation's spending on new roads, factories and houses stokes demand for construction equipment. The company plans to pursue a Hong Kong listing after Bluestar Adisseo Nutrition Group and China Datang Corp withdrew or delayed sales - set to raise a combined total of as much as $2.6 billion - amid falling share prices.

"The IPO frenzy is losing momentum," said Michiya Tomita, a Hong Kong-based fund manager for Mitsubishi UFJ Asset Management Co, which oversees $65 billion globally. "The market is concerned about the Korean peninsula, China's tightening and Europe's debt problem."

Zhan Chunxin, Zoomlion's chairman, was not immediately available to comment when calls were made to his Changsha office.

Zoomlion fell 1.86 percent to 14.23 yuan ($2.14) on Friday in Shenzhen. The company has received approval from the China Securities Regulatory Commission to sell shares in Hong Kong, according to a Nov 21 Shenzhen Stock Exchange filing.

Bluestar Adisseo, the animal-nutrition producer backed by Blackstone Group LP, withdrew its IPO this week because of "continued and excessive" market volatility. Datang delayed a roadshow for a share sale in its renewable-energy unit because of market conditions, said two people with knowledge of the plan who declined to be identified.

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The benchmark Hang Seng Index has slumped 7.7 percent from Nov 8, its highest this year, after China stepped up measures to contain inflation, and Ireland accepted a European Union-led bailout. Hong Kong IPOs have raised a record $44 billion this year, with companies including Agricultural Bank of China Ltd and AIA Group Ltd selling stock.

Sateri Holdings Ltd and Greatview Aseptic Packaging Co said at media briefings in Hong Kong this week that they are pushing ahead with IPO plans. Sateri, a Chinese cellulose maker, is seeking $600 million and plans to price its stock on Dec 2 and start trading on Dec 8. Greatview, a beverage-packaging company based in Beijing, is seeking about $214 million.

Zoomlion, which generated more than 90 percent of sales in China last year, boosted third-quarter net income 45 percent to 924 million yuan. The company has factories in Shanghai, Hunan, Shaanxi and Guangdong, and Milan.

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