The H-share bandwagon ran off the track yesterday, as disappointing corporate results reminded Hong Kong investors that the Chinese economy is still in the midst of a recession.
Shanghai Petrochemical fell more than 7 per cent to close at $2.075 ahead of results released after the close of trade. The stock price was also hurt after the company last week sold 500 million new shares.
Yizheng Chemical, the world's fourth biggest polyester maker, fell as much as 5.5 per cent after posting interim profits down 74.6 per cent.
Jilin Chemical dropped as much as 2.4 per cent, while Dongfang lost one per cent.
Yesterday's fall was the sharpest seen in a rally that has pulled up the Hang Seng China Enterprises Index, which tracks H shares, by more than 10 per cent since the start of August.
Even Hong Kong-based, China-related stocks, known as red chips, lost out yesterday. Citic Pacific, considered the strongest China-play on the market, ended down 1.15 per cent.
