Shanghai stocks rise with help from consumer and banking firms

China is boosting demand in the consumer sector which has "helped increase domestic residents' expenditure on consumer goods."

Shanghai stocks edged up today as investors sought consumer and banking companies as China aims to boost domestic demand, analysts said.

The Shanghai Composite Index rose 0.34 percent to 3,174.03 points, led by liquor and household appliances shares as well as banks and brokers.

Domestic leading liquor maker Kweichow Moutai Co gained 3.40 percent to 742.41 yuan (US$117.18), while China Merchants Bank Co added 2.46 percent to 30.82 yuan.

Ma Wenyu, strategic analyst at Shanxi Securities, said China aims to boost domestic demand amid rising trade tensions  with the US.

Although President Donald Trump's pledge to help Chinese high-tech company ZTE Corp “get back into business” may help ease trade tensions, “huge uncertainties remain in the long term,” he said. “The Chinese government is taking efforts to bolster the domestic market, especially to boost demand in the consumer sector.”

The government's policies to alleviate poverty “helped increase domestic residents’ expenditure on consumer goods, especially on food, clothing and medicine,” said China Merchants Bank Co in a report.

Banks also rose today amid government effort to increase liquidity in the financial system, Ma added.

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