China stocks close lower as power crunch weighs

China stocks closed lower on Wednesday, as a widening power crunch prompted investors to exit sectors vulnerable to factory shutdowns, including chemicals and steelmaking. The blue-chip CSI300 index fell 1% to 4,833.93, while the Shanghai Composite Index lost 1.8% to 3,536.29. ** Analysts said the power supply crunch, which has shut factories across the country, may pose a much bigger threat to the economy than the debt crisis at Evergrande Group.

China stocks closed lower on Wednesday, as a widening power crunch prompted investors to exit sectors vulnerable to factory shutdowns, including chemicals and steelmaking. The blue-chip CSI300 index fell 1% to 4,833.93, while the Shanghai Composite Index lost 1.8% to 3,536.29.

** Analysts said the power supply crunch, which has shut factories across the country, may pose a much bigger threat to the economy than the debt crisis at Evergrande Group. ** Investors shunned industries vulnerable to power shortages, with non-ferrous metal, steel, and chemicals plunging between 3% and 5.4%.

** Goldman Sachs and Nomura have revised down projections for Chinese economic growth this year as a result. ** China urged railway companies to strengthen coal transportation and asked local governments to closely monitor coal supply, demand, and inventories at power plants.

** The energy sub-index and the coal sub-index tumbled more than 5% each. ** China's central bank governor Yi Gang said China's potential economic growth rate is still expected to remain in the range of 5% to 6% and the country will stay with normal monetary policy settings for as long as possible.

** The real estate and banking sectors gained after cash-strapped Evergrande Group said it planned to sell a $1.5 billion stake it owns in Shengjing Bank Co Ltd to a state-owned asset management company. ** Beijing is prodding government-owned firms and state-backed property developers such as China Vanke Co Ltd to purchase some of Evergrande's assets, people with knowledge of the matter said.