SHANGHAI: Chinese shares closed higher on Tuesday, led by gains in real estate stocks, after the central bank pledged to protect consumers exposed to the housing market, even as the country grappled with power crunch and concerns over economic recovery.
The blue-chip CSI300 index edged 0.1% higher to close at 4,883.83, while the Shanghai Composite Index gained 0.5% to 3,602.22 points.
China power crunch spreads, shutting factories and dimming growth outlook
** China's CSI 300 Real Estate Index surged 5.6% after the People's Bank of China (PBOC) vowed to protect consumers exposed to the housing market on Monday and injected more cash into the banking system.
** The Shenzhen government began investigating the wealth management unit of ailing property developer Evergrande , in a clearest sign yet the authorities could move to contain contagion risks.
** The banking sub-index rose 1.8% as shares in China's property sector rebounded.
** Profit growth at China's industrial firms slowed for the sixth month as plants fought off high commodity prices, COVID-19 outbreaks and part shortages, with an unfolding power crisis a growing threat to output and bottom-lines.
** Goldman Sachs has cut China's economic growth forecast for 2021 to 7.8% from 8.2%, as energy shortages and deep industrial output cuts add "significant downside pressures", it said in a note on Tuesday.
** The coal sub-index gained 4.3% amid supply crunch, which has led to power cuts across households and industrial sectors in China.
** In Northeast China, senior officials face mounting pressure from alarmed citizens to ramp up coal imports thick and fast in order to keep lights on, factories open and even water supplies flowing.
** More companies announced their operations have been hit by the widening power curbs, while China's State Grid Corp pledged to ensure basic power supply and avoid electricity cuts.
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