Dec. 18 (Bloomberg) -- Cnooc Ltd., China’s largest offshore oil producer, plunged after Credit Suisse Group AG cut its earnings projection for the company, driving an index that tracks Chinese stocks traded in New York to a one-month low.
American depositary receipts of Cnooc retreated to the lowest since August. The Bloomberg China-US Index of the most traded Chinese stocks in the U.S. slipped 1 percent to 103.8 yesterday in New York. PetroChina Ltd., the nation’s largest oil company, fell as the government widened an anti-corruption probe in its parent. Solar-panel maker Yingli Green Energy Holding Co. jumped 12 percent after saying its products will be exempt from European Union duties.
Credit Suisse reduced its outlook for Cnooc’s 2014 earnings by 5 percent, saying that half of the company’s planned projects for this year will be pushed into next year. PetroChina declined to a three-month low after Wen Qingshan resigned yesterday as the chairman of Kunlun Energy, the gas distribution arm of China National Petroleum Corp. amid a government investigation that has already claimed five other officials at two companies.
“Project delay is a norm for any oil company,” Michael Ding, the lead manager of the China Region Fund at U.S. Global Investors, which oversees $2.2 billion, said by e-mail yesterday. “With regard to PetroChina, for the short term, there is policy or strategy vacuum with the company due to changes of management and turmoil within.”
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., declined 1.2 percent to $37.72 in New York. The Standard & Poor’s 500 Index dropped 0.3 percent before Federal Reserve policy makers announce plans for their monthly bond-buying program today.
Cnooc fell 3.5 percent to $183.17, the lowest since Aug. 9. The oil company may be under pressure as weaker-than-expected execution may put further downside risks to planned projects next year, Credit Suisse analysts led by Thomas Wong wrote in a report yesterday. The bank lowered its production growth estimate for 2014 by 8 percent.
PetroChina slipped 2.2 percent to $109.27, the lowest since Aug. 30.
Kunlun Energy suspended its shares following a report in China’s Caixin magazine on Dec. 16 that Wen is helping in a government graft probe. Wen was taken into custody to assist with an investigation, a person with knowledge of the matter said yesterday, asking not to be identified as he wasn’t authorized to speak publicly about it.
Wen’s resignation came three months after the official Xinhua News Agency reported that the former chairman of CNPC and PetroChina, Jiang Jiemin, was dismissed as head of the state assets regulator and is under investigation.
Yingli, the largest solar maker, jumped the most since September to $4.83. Chairman Liansheng Miao said in a statement that the company “fully complies” with European regulations and will be exempt from duties.
European Union countries approved a deal with China to curb imports of Chinese solar panels, setting a minimum price and a volume limit on European imports of Chinese solar panels until the end of 2015.
Yingli also said in a statement on Dec. 16 that it led a group won an order to provide 233 megawatts of solar panels to projects in Algeria.
Melco Crown Entertainment Ltd., which operates casinos in Macau, rose 1.1 percent to a record $38.87.
Gross gaming revenue in Macau could rise 18.5 percent in December from a year earlier and average daily table revenue will probably stay “strong” as the holiday period nears, Barclays Plc.’s analysts led by Phoebe Tse write in a note to clients yesterday.
The Shanghai Composite Index fell for a sixth day, slipping 0.5 percent to 2,151.08, capping the longest losing streak since June. The Hang Seng China Enterprises Index in Hong Kong slumped 0.3 percent to a one-month low of 10,894.29.
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