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.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)