SHANGHAI, Sept 27 (Reuters) – Shanghai shares fell on Monday as analysts worried that a recent power crunch which has curbed factory production is weighing on economic growth. Blue-chips rose, led by consumer staples ahead of the National Day holiday.
The blue-chip CSI300 index rose 0.6%, to 4,877.37, while the Shanghai Composite Index lost 0.8% to 3,582.83 points.
** China’s power crunch, caused by tight coal supplies and toughening emissions standards, has triggered a contraction in heavy industry across several regions and is dragging on the country’s economic growth rate, analysts said.
** The energy sub-index dropped 0.6% after Beijing vowed to resolve supply shortages and curb price rises as the peak winter consumption season approaches.
** Power-intensive sectors like resources, non-ferrous metals, chemicals dropped sharply.
** “The power crunch has prompted us to further cut our year-on-year Q3 and Q4 GDP growth forecasts to 4.7% and 3.0%, respectively, from 5.1% and 4.4%,” Ting Lu, chief China economist at Nomura, said in a note.
** Consumer staples surged 5% ahead of the week-long National Day holiday starting from Oct. 1, which has traditionally been a peak season for consumption.
** The Ministry of Commerce said China would ensure sufficient market supply and stable prices during the National Day holiday, state media CGTN reported on Sunday.
SOURCE : https://www.reuters.com/article/china-stocks-close/shanghai-shares-fall-as-power-crunch-weighs-idUSAZN01NLKE