Shanghai shares fall as power crunch weighs

** "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.

Shanghai shares fell on Monday as analysts worried that a recent power crunch that 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 the 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.