Shares of Chinese coal miners tumble as power crunch eases

 

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Shares of Chinese coal miners are slumping as the power crunch in Southwest China’s Sichuan province eases, with an index tracking mainland-listed coal miners compiled by Wind Information slumping 5.2% as of 2:56 pm local time, making it the worst-performing sector in the A-share market, compared to 0.5% loss for the benchmark Shanghai Composite Index.

In Hong Kong, Nan Nan Resources is slumping 10%, China Coal sliding 5.1%, Yankuang Energy down 3.5% and China Shenhua down 2.2%.

A power crunch driven by drought in China’s southwestern province of Sichuan, the country’s biggest hydropower producer, has started to ease as temperatures fall. Sichuan province on Monday lowered the energy supply emergence response level from top level-one to level-two.

Power for ordinary industrial and commercial users has been restored while that for large industrial users will be gradually restored, except for highly energy-intensive industries, state media reported, citing the State Grid Corp.