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HK shares fall 2 pct; energy stocks lead slide

Fri Jul 25, 2008 4:09am EDT
 
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HONG KONG, July 25 (Reuters) - Hong Kong shares closed 2 percent lower Friday after disappointing U.S. home sales data brought the ongoing crisis in financial markets back into focus and energy stocks recorded hefty losses on a raft of bad news.

Asia's biggest oil and gas company PetroChina (0857.HK: Quote, Profile, Research, Stock Buzz) slid more than 4 percent as crude prices held below $126 per barrel throughout most Asian trade on Friday.

Chian Shenhua Energy (1088.HK: Quote, Profile, Research, Stock Buzz) tumbled over 8 percent after Beijing announced stricter price controls on thermal coal supplied to power generators. Shenhua is the most exposed to policy risk among China's coal miners with power generators accounting for 79 percent of its sales in 2007, said HSBC in a research report.

The Hang Seng Index .HSI unofficially closed 455.51 points lower at 22,632.21.

The China Enterprises Index .HSCE of top locally listed Chinese firms fell 3.2 percent.

(Reporting by Parvathy Ullatil; Editing by Ken Wills and Jonathan Hopfner)

 

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