China power crunch is next economic shock after Evergrande

China's economy is at risk of a severe shortage of coal and gas that is used to heat homes and power factories this winter. - AFP

BEIJING (Bloomberg): China may be diving head first into a power supply shock that could hit Asia’s largest economy hard just as the Evergrande crisis sends shockwaves through its financial system.

The crackdown on power consumption is being driven by rising demand for electricity and surging coal and gas prices as well as strict targets from Beijing to cut emissions.