Shanghai, Hong Kong stocks fall on overnight Wall Street losses, China power crunch

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SHANGHAI, Sep 29 (Businesshala) – Shares in Shanghai and Hong Kong fell on Wednesday, tracking losses on Wall Street and buoyed by China’s worsening power shortage, with investors staking Chinese stocks for factories including chemicals and steelmaking. succumbed to closure.

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The CSI300 index fell 1.1% to 4,828.41 at the end of the morning session, while the Shanghai Composite Index fell 1.8% to 3,537.60.

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The Hang Seng index fell 0.5% to 24,389.78. The Hong Kong China Enterprises Index fell 0.8% to 8,654.36.

** Analysts said China’s power supply crisis, which has shut factories across the country, could pose a much bigger threat to the economy than the debt crisis at Evergrande Group.

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**Investors left industries hit by power shortages, non-ferrous metals, steel, chemicals fell between 3% and 5%.

** China sought to reassure residents and businesses, urged railway companies to strengthen coal transport and asked local governments to closely monitor the supply, demand and inventory of coal at power plants.

**Energy sub-index and Coal sub-index fell by over 4.9% each.

** China’s central bank governor Yi Gang said China will stick to a normal monetary policy setting for as long as possible.

** The Hang Seng Tec Index dropped 2.2%, tracking sharp declines on Wall Street on deep concerns over rising Treasury yields and persistent inflation.

** The energy sector fell 3.3% as oil prices fell on demand concerns, while coal-related stocks fell amid China’s power crisis.

** The content sector is down by about 4%.

** Cash-strapped Evergrande Group said after gaining trend, assets and financial gains, it plans to sell a $1.5 billion stake in Shengjing Bank Co., Ltd. to a state-owned asset management company. The developer jumped over 10%.

** Beijing is provoking state-owned firms and state-backed property developers such as China Vanke Co Ltd to buy some of Evergrande’s assets, people with knowledge of the matter said.

Reporting by Shanghai Newsroom; Editing by Rashmi Aichi


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