Energy crunch under Shanghai’s heatwave send post-lockdown recovery into spasms in China’s commercial hub
- Shanghai authorities switched off lights for two days along The Bund waterfront and the Lujiazui finance zone to save power
- The two-month lockdown caused Shanghai’s economy to contract by 13.7 per cent in the second quarter, the worst slowdown in four decades
This summer, China’s biggest commercial city recorded at least seven days where the temperature rose above 40 degrees Celsius, the most since meteorological records started in 1872, according to the local meteorological station. Shanghai also logged its hottest day ever on July 13, when the mercury hit 40.9 degrees. Large parts of the country have been affected by a severe drought because of a record-breaking heatwave.
The inclement weather prompted local authorities to switch off lights along The Bund waterfront and the Lujiazui finance zone, where the Shanghai Stock Exchange and HSBC Tower are located, for two days through Tuesday. The authorities did not provide details, but it is widely believed the move was undertaken to conserve power to ensure supplies for industrial and household use.
“The sweltering heat has posed yet another challenge to the local economy after it was walloped by a two-month citywide [Covid-19] lockdown,” said Wang Feng, the chairman of Ye Lang Capital, a Shanghai-based finance firm. “Most manufacturing companies have been prepared to operate at reduced capacity because of power shortages and concern for their staff’s health and well-being.”
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Shanghai turns off decorative lights on the Bund to save power
