Sept. 20 (Bloomberg) -- Chinese energy companies from Yanzhou Coal Mining Co. to PetroChina Co. fell in New York after rallying in Hong Kong, as falling oil prices outweighed the Federal Reserve’s decision to maintain monetary stimulus.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. slid 0.4 percent to 103.64 as of 12:31 p.m. American depositary receipts of PetroChina, China’s biggest oil producer, retreated, widening its discount versus the Hong Kong shares to the widest in three months. Yanzhou slumped 2 percent after rising 2.5 percent in Hong Kong trading, erasing the biggest premium in two months reached the previous day. Cnooc Ltd. retreated.
West Texas Intermediate crude fell for the fourth time in five days as President Bashar al-Assad said Syria will make available information about its chemical weapons, offsetting gains backed by the Federal Reserve’s decision to refrain from reducing its bond purchases. China’s coal price has declined almost 12 percent this year, leading to a decrease of 150 million tons in total raw coal output, according to a report by Bloomberg Industries.
The decline in crude prices “helped drag down oil stocks” even after the Fed’s decision boosted emerging-market equities, Sam Mahtani, who oversees about $5 billion as director of emerging markets at F&C Asset Management Plc in London, said by phone. “The coal sector in China will remain weak in the next several years as rising supply will keep prices low,” he said.
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., sank 1.1 percent to $38.73 in New York, slumping the most in a week. The Standard & Poor’s 500 Index slipped 0.1 percent as investors weighed the latest batch of U.S. economic reports, including previously owned U.S. home sales and the Federal Reserve Bank of Philadelphia’s general economic index.
The Hang Seng China Enterprises Index jumped 1.7 percent yesterday to 10,769.54, the highest level since May. The markets in mainland China were closed for a holiday.
--Editors: Marie-France Han, Tal Barak Harif