Strong performance by food and drink sectors

China’s main equity indexes closed mixed on Monday, while the food, beverage and liquor industries posted strong performances.

The benchmark Shanghai Composite Index shed 0.19 percent to end at 2,810.02 points, while the smaller Shenzhen Component Index increased 0.47 percent at 10,501.15 points.

The blue chip CSI300 Index advanced 0.69 percent to 3,849.15 points, while the startup board ChiNext Composite Index edged up 0.28 percent to 2,052.20 points.

Turnover on the two major bourses stood at 490.6 billion yuan (US$57.28 billion), compared with the 592.7 billion yuan in the previous trading session.

Chinese mainland markets saw a net inflow of 3.53 billion yuan in overseas capital via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

As consumption gradually gained momentum in China, shares related to consumption performed strongly.

Losers outnumbered gainers by 811 to 775 on the Shanghai bourse and 1,184 to 992 in Shenzhen, with the gains led by companies involved in food, beverages and liquor.

Five shares in the food and beverage sector hit the daily limit of 10 percent.

Since May 1, shares in Anji Foodstuff Co Ltd have surged by over 70 percent. New Hope Dairy Co Ltd shares were up by around 44 percent while Qingdao Richen Food Co Ltd increased by about 34 percent.

Analysts said the main factors benefiting the food and beverage sector were the recovery in domestic consumption and the inflow of foreign capital.

With investment “warming up,” and a favorable economic environment, an increasing number of business dinners would help the sector as well as liquor makers, they said.