SHANGHAI, Oct 12 (Businesshala) – Chinese shares closed lower on Tuesday, dragged by coal and power-intensive sectors, while property firms pointed to a possible policy easing to support the troubled sector by analysts .
The blue-chip CSI300 index fell 1.1% to 4,883.84, while the Shanghai Composite Index fell 1.3% to 3,546.94.
** The coal sub-index fell 2.2% as China stepped up efforts to boost coal production amid short supply, triggering China’s worst power crisis in years.
** 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 regions, state TV reported on Monday. Premier Li Keqiang was quoted as saying.
** China’s state planner said on Tuesday it would completely liberalize pricing for coal-generated electricity and allow industrial and commercial users to all buy from the market.
** Power generation stocks declined, with the utility sub-index down 2.4%.
**Non-ferrous metals stocks, chemical and steel firms declined between 2.8% and 3.8%.
** Semiconductors, infrastructure, media and brokers sectors each declined more than 2.5%.
**Continuing the trend, real estate firms rose 1.5%.
“We believe default risk and asset market weakness is largely dictated by asset stocks,” Morgan Stanley said in a note. “Given the trough assessment and the potential for policy easing, we believe the risk-reward is favorable at current levels.” (Reporting by Shanghai Newsroom; Editing by Ramakrishnan M)