SHANGHAI: China stocks fell on Tuesday as coal stocks dropped amid government efforts to urge firms to step-up output. Hong Kong shares lost ground, dragged by tech giants.
** The CSI300 index fell 0.7% to 4,903.61 points at the end of the morning session, while the Shanghai Composite Index lost 1% to 3,554.38 points.
** The Hang Seng index dropped 1% to 25,066.05 points. The Hong Kong China Enterprises Index lost 1.2% to 8,891.36.
** The coal sub-index dropped 2.8% as China increased its efforts to boost coal output amid short supply, which has led to China’s worst power crunch in years.
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** China will set a timetable and road map for meeting its carbon emissions target, and correct “one-size-fits-all” practices of power cuts and production limits in some areas, state TV quoted Chinese premier Li Keqiang on Monday.
** The power-intensive industries non-ferrous metal , chemicals, steel declined between 2.5% and 3.4%.
** The semiconductors, infrastructure , media and broker sectors shed more than 2% each.
** Bucking the trend, real estate firms and banks rose 2.3% and 0.6%, respectively.
** “We believe the default risks and property market weakness have been largely priced into property stocks,” Morgan Stanley said in a note. “Given trough valuations and likelihood of policy easing, we believe risk reward is favourable at current levels.”
** In Hong Kong, the Hang Seng Tech Index terminated a three-consecutive-session rise and dropped 2.2%.
** E-commerce giant Alibaba Group lost 3.2% after the Wall Street Journal reported Chinese President Xi Jinping is scrutinizing the ties that the country’s state banks and other financial institutions have developed with big private companies.
** The healthcare sub-index, the energy sub-index and the industrial sub-index fell more than 1% each.
** Shares of Evergrande New Energy Vehicle Group gained 5.7% after the company said on Monday it aimed to start producing electric vehicles (EV) next year despite an external investment crunch.