Beijing has ordered its banks to support the financial needs of coal and energy companies. With nearly two-thirds of provinces grappling with power rationing, China’s power supply situation continues to challenge the economy. “Banks and other financial institutions should prioritize lending to qualified mines and power plants, and make them ensure to boost thermal coal and electricity output,” said China Banking and Insurance Regulatory Commission in a statement (pdf) on Oct. 4. The country is in the midst of a power crisis, as shortages of coal are combined with high demand from manufacturers, industries, and households. This has driven coal prices to record highs and forced widespread usage restrictions. China’s current power crunch is reportedly affecting about 20 provinces and regions, representing over 66 percent of its gross domestic product (GDP). Wall Street investment bank Morgan Stanley estimated that China’s energy demand has increased by nearly 15 percent over the …
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