The Shanghai Composite Index (SHCOMP), which tracks the bigger of China’s stock exchanges, rose 23.04 points, or 1 percent, to 2,319.12. The CSI 300 Index gained 1.5 percent to 2,504.09. China’s markets will be shut next week for the Lunar New Year.
Consumer stocks: Kweichow Moutai Co. (600519) (600519 CH), China’s biggest producer of baijiu liquor by market value, gained 2.9 percent to 185.97 yuan, the highest close in a week. Henan Shuanghui Investment & Development Co. (000895 CH), the publicly traded unit of China’s biggest food company, climbed 2.8 percent to 67 yuan. Zhengzhou Sanquan Foods Co. (002216) (002216 CH), China’s biggest listed frozen food producer, jumped 7.3 percent to 25.91 yuan.
“The Spring Festival effect is the main reason for consumer stocks’ rally,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. “They are good investment options with relative stable earnings growth.”
China Everbright Bank Co. (601818) (601818 CH) gained 2 percent to 3.04 yuan after it said in a preliminary earning statement profit for 2011 rose 41 percent from a year earlier.
Guangxi Wuzhou Zhongheng Group Co. (600252) (600252 CH), a maker of Chinese medicines, plunged 8 percent to 7.90 yuan, its lowest close since July 2010. The company expects about 400 million yuan ($63.2 million) of 2011 net income, compared with an earlier estimated 600 million yuan because it was misled by a distributor, Zhongheng said in a statement yesterday.
Huaxia Bank Co. (600015) (600015 CH), partly owned by Deutsche Bank AG, climbed 3 percent to 12.12 yuan after it said profit may have increased more than 50 percent last year.
--Zhang Shidong. Editor: Chan Tien Hin
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