Hong Kong stocks tumble

Hong Kong stocks fell 1.4 percent in volatile trade on Wednesday, dragged down by losses in Chinese stocks, with oil and insurance shares leading the fall. But shares in China Coal, the country's second-largest coal producer, bucked the trend to jump as much as 7.4 percent before closing up 1.35 percent at HK$15.04 ahead of its earnings due later in the day.
Traders will focus on earnings from China Construction Bank on Friday and a series of US economic data as they gauge the outlook for the global economy. "The market is over-bought after recent gains. The Wall Street decline yesterday triggered selling pressure and it's time for profit-taking," said Alex Tang, research director of Core Pacific-Yamaichi.
"Most recent corporate earnings are below market expectations, such as Sinopec. Their earnings are expected to be revised down quite sharply. "The market is in consolidation again. It is likely to move to the 22,000 level in the short term."
China's main stock index tumbled more than 5 percent on Wednesday, ending a four-day rebound from 11-month lows, as large caps were sold off after the market retreated from technical resistance. The benchmark Hang Seng Index ended down 1.35 percent, or 327.12 points, at 23,984.57.
The China Enterprises Index of Hong Kong-listed mainland firms, or H shares, fell 2.52 percent to 12,863.80. Mainboard turnover fell to HK$83.41 billion ($10.7 billion), from HK$87.74 billion on Monday.
Asia's top oil refiner Sinopec Corp slid 4 percent after oil prices climbed to near $109 per barrel, further squeezing its refining margins as domestic fuel prices are capped by the government, while the country's second-largest refiner PetroChina fell 3.6 percent to HK$10.26.
Chinese insurer China Life fell 3.7 percent and Ping An fell 3.9 percent due to concerns over their investment income in the first half of this year after the domestic market plunge. Chinese Internet firm Alibaba slid 8.7 percent to HK$15.30 after Deutsche Bank downgraded the stock to hold from buy on concern about the growth of its Gold Supplier memberships.
China Blue Chemical Ltd fell as much as 3.5 percent after Norwegian fertiliser group Yara offered to sell a 1.75 percent stake in China's top producer of nitrogen fertilisers. China Railway Construction Corp Ltd fell 5.2 percent after it said it had issued 181.54 million H shares at an offer price of HK$10.70 each to cover overallocation of shares in the international offering during its IPO.