By Justina Lee
Chinese energy stocks broadly declined Thursday morning amid persistent concerns that an economic downturn in the global economy could curb demand.
China-listed shares of oil majors PetroChina Co. and China Petroleum & Chemical Corp., also known as Sinopec, fell 1.9% and 0.7%, respectively. China Oilfield Services slid 3.7%.
Among coal companies listed in China, China Coal Energy Co. shed 1.7% and China Shenhua Energy Co. fell 0.9%.
The declines weighed on benchmark indexes in Shanghai and Shenzhen, with both down about 0.4%. The CSI 300 index, which tracks large-capitalization stocks listed in Shanghai and Shenzhen, fell 0.6%.
While investor sentiment has been partially supported by signs of China reopening its economy, this has been offset by intense global recessionary worries, SPI Asset Management Managing Partner Stephen Innes said in a note. The oil market remains volatile, with reasons aplenty for traders to consider selling in the current environment, he added.
“As the procession to recession shortens, oil prices could continue to fall due to demand concerns,” Mr. Innes said.
Citi analysts highlighted in a recent note signs of flagging demand in China, noting that April electricity demand fell 1.3% from a year earlier.
Write to Justina Lee at firstname.lastname@example.org