Consumption stocks send shares higher
China’s A-share markets reversed earlier losses on Wednesday, thanks to the strong performance of the consumption sector.
The benchmark Shanghai Composite Index gained 0.25 percent to finish at 2,985.66 point after a volatile trading day.
The smaller Shenzhen Component Index was 0.31 percent higher to close at 9,753.31, while the ChiNext Index inched up 0.08 percent to finish at 1,679.31 points.
Combined turnover of the two bourses came to 487.1 billion yuan (US$ 68.7 billion), compared with the previous trading day’s volume of 585.9 billion yuan.
Most sectors gained, with food and beverage makers, leisure services providers and biomedicine companies among the biggest gainers. Shares of Jiugui Liquor Co Ltd surged by the daily limit of 10 percent to close at 36.53 yuan per share.
Kweichow Moutai Co Ltd, another Chinese liquor maker, saw its shares jump 5.02 percent.
Stocks of flammable ice and shale gas companies slumped, following a sharp drop in crude prices overnight after Saudi Arabia signaled that its oil deliveries would return to normal soon.
Market sentiment was lifted by President Xi Jinping’s remarks on promoting domestic manufacturing, Yang Zhenyu, a strategy analyst at Central China Securities, was quoted as saying by Caixin.com.
Yang said Thursday would see interest rate decisions by central banks in the US, the UK and Japan, and investors are particularly anticipating the US Federal Reserve's latest monetary policy decision.
The US central bank is widely expected to cut rates by 25 basis points, which will send the US dollar index lower and push up the price of gold, Yang added.
