Realty, brewer shares boost key index
Real estate companies and brewers boosted Shanghai shares yesterday as investors were buoyed by new property policies and investments in brewers.
The Shanghai Composite Index gained 0.77 percent to 3,436.59 points, the highest since November 13.
Real estate developers Greenland Holdings Corp and Shanghai Ya Tong Co both jumped by the daily limit of 10 percent to 10.13 yuan (US$1.57) and 10.92 yuan respectively.
Real estate companies benefited from news that China would allow non-real estate enterprises and villages to build houses on the land they own to boost housing supply.
Shen Meng, director of domestic investment bank Chanson & Co, said the policy would continue to bolster the shares of real estate firms in the coming months on expectations that the industry would be energized in the long term.
There was also investor interest in brewers after conglomerate Fosun became the second-largest stakeholder of Tsingtao Brewery Co by buying its Hong Kong-listed shares. Investor sentiment was further fueled on news that Shanghai Chongyang Investment Co bought shares of Beijing Yanjing Brewery Co.
Shares of Chongqing Brewery Co surged 7.08 percent.
Shen expected brewers to be one of the most stable sectors in the Chinese mainland food and beverage market amid capital inflows.