Shares rise on boost from distilleries
Shanghai stocks rallied yesterday, boosted by distilleries as Kweichow Moutai raised the price of its fiery liquor.
The Shanghai Composite Index gained 0.63 percent to end at 3,296.38 points.
Distilleries surged, with the sub-index up 5.16 percent.
Kweichow Moutai Co, China’s leading liquor maker, jumped 8.21 percent to 718.69 yuan (US$110) after announcing a rise of at least 10 percent in its product prices next year and forecasting a 58 percent increase in 2017 profit on the back of a 50 percent gain in revenue.
Moutai’s gains spilled over to other distilleries. Sichuan Swellfun Co rose 3.84 percent, and Shanxi Xinghuacun Fen Wine Factory Co added 3.32 percent.
Nonferrous-metal makers such as Zijin Mining Group Co, Henan Zhongfu Industrial Co and Jiangsu Lidao New Material Co all surged by the daily limit of 10 percent, boosted by news that world copper futures prices hit a record high over the past 55 months at US$7,240 yuan per ton on the London Metal Exchange.
Xining Special Steel Co also jumped by the daily 10 percent cap to 5.68 yuan. Industrial raw materials such as nonferrous metal and steel have enjoyed profit and price gains over the year on the back of China’s supply-side reform and industrial upgrading, Chuancai Securities said in a note.