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RPT-Hong Kong shares slip 1.9 pct after poor U.S. homes data

Fri Jul 25, 2008 1:14am EDT
 
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(Repeats, fixing typo in paragraph 9)

*HSI down percent tracking overnight slump on Wall Street

*China stocks lead losses with all HSCE stocks in the red

*Coal, power and oil stocks post sharp falls

(updates to mid-day)

HONG KONG, July 25 (Reuters) - Hong Kong shares slid 1.9 percent on Friday morning, as analysts predicted the end of a short-lived global rally after disappointing U.S. home sales data rekindled worries over the health of financial markets.

Energy stocks took a beating on a raft of bad news including more rigid price controls, profit warnings and easing oil prices.

China Shenhua Energy (1088.HK: Quote, Profile, Research, Stock Buzz) fell 6.3 percent, adding to Thursday's 4.9 percent fall, after Beijing announced stricter price controls on thermal coal used by power plants.

Shares in Datang International Power (0991.HK: Quote, Profile, Research, Stock Buzz), China's second-largest listed electricity provider, tumbled 7.3 percent after it estimated its first-half net profit fell more than 70 percent due to a sharp rise in coal prices.  Continued...

 

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