Markets surge as reforms outlined

Huang Yixuan
Consumer stocks led the strong rebound after government institutions jointly detailed planned reforms at a news conference.
Huang Yixuan

Chinese stocks soared yesterday, reversing the previous day's losses after several government institutions jointly outlined details of planned reforms for this year.

Consumer and brokerage stocks led the rebound.

The Shanghai Composite Index surged 1.36 percent to end at 2,570.34 points. Turnover jumped to 137.2 billion yuan (US$20.31 billion) from 116.2 billion yuan on Monday.

The smaller Shenzhen Component Index also soared 1.86 percent to 7,547.35 points, and the blue chip CSI300 index closed 1.96 percent higher at 3,127.99 points.

Stocks of 49 A-share companies rose sharply, hitting the daily cap of 10 percent.

Consumer shares, including the food and beverage sector, the household appliance sector and catering and tourism, were among the biggest gainers.

Liquor companies led the boom, with shares of seven A-share companies including Shede Spirits Co, Shanxi Xinghuacun Fen Wine Factory Co and Tsingtao Brewery Company hiting the 10 percent cap.

Stocks related to the reform of state-owned enterprises also performed strongly, after Lian Weiliang, deputy director of the National Development and Reform Commission highlighted the importance of the mixed-ownership reform of state-owned enterprises at a press conference.

The commission would redouble its efforts to push forward SOE reform, including implementing more measures and seeking more input and launch a fourth batch of 100 pilot companies for the reform.

Langold Real Estate Co, a unit of Power Construction Corporation of China), and China Haisum Engineering Co , a unit of China Poly Group Corporation, were among the stocks that hit the daily cap.

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