The blue-chip CSI300 index ended down 1.3 per cent to 4,898.16, while the Shanghai Composite Index lost 1 per cent to 3,562.31 points.
The coal sub-index and the energy sub-index slumped 4.2 per cent and 3.2 per cent, respectively.
China said it will conduct “clean up and rectification” work on coal storage sites in some coal-producing areas and ban storage sites without approvals in its latest move to address skyrocketing coal prices.
Consumer staples, healthcare shares and semiconductors lost between 1.2 per cent and 1.8 per cent.
The environmental protection industry index, the new energy index, and the new energy vehicles index went up more than 2 per cent each.
China’s cabinet said the country will take action to reduce waste, promote renewables and unconventional fuel, and reform its electricity network as part of its plan to bring carbon emissions to a peak before 2030.
China Merchants Securities said in a note that fossil fuels used in power generating are still a main source of carbon emission, while using new energy is the fundamental to achieve carbon neutrality, which is also a theme of development in the coming decades.
Separately, data shows profit at China’s industrial firms rose at a faster pace in September despite surging prices and supply bottlenecks.
