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China H-shares in biggest loss in 4 months, coal producers sink
December 11, 2013 / 8:06 AM / in 4 years

China H-shares in biggest loss in 4 months, coal producers sink

HONG KONG, Dec 11 (Reuters) - Offshore Chinese stocks in Hong Kong posted their heaviest loss in nearly four months on Wednesday, led by coal producers after the country’s top economic planner said its use will be curbed to combat pollution.

The China Enterprises Index of the top offshore Chinese listings in Hong Kong ended down 2.7 percent in its biggest daily loss since Aug. 20.

The Hang Seng Index shed 1.7 percent to 23,338.2 points, as losses accelerated after dipping below chart support at the 23,500.

Losses came in the strongest daily turnover since Nov. 19 at $9.5 billion, some 11 percent above its 20-day moving average.

China Coal Energy tumbled 3.9 percent in a fourth-straight loss, while clean energy companies rose after the National Development and Reform Commission listed its key energy conservation initiatives for 2014, which include reducing coal consumption and formulating a programme to control its usage, according to the Securities Times.

Profit-taking also sapped recent outperformers as investors marked time before the end of an annual economic planning meeting, which started on Tuesday and where China’s leaders are expected to set 2014 economic targets and reform priorities.

While targets are usually only announced at the annual parliamentary session in March, investors expect a communiqué at the planning meeting for more signs of Beijing’s reform priorities.

More November data is also due, with numbers for money supply, loan growth and total social financing expected by Dec. 15.

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