SHANGHAI shares jumped yesterday after a leading overseas bank’s report said that major indicators of the Chinese economy pointed to continued growth.
The Shanghai Composite Index rose 1.48 percent to close at 3,136.64 points.
Investor turned optimistic after Standard Chartered Bank noted in the report that China’s economy is likely to have remained stable in April, with major indicators pointing to continued growth.
The UK-based bank expects China’s producer price index, which has not been released yet, to have picked up to 3.4 percent after slowing for five consecutive months. The report also said that April saw resilient growth in retail sales as well as a likely recovery in exports.
“A flurry of Chinese data in the coming weeks is expected to show that the world’s second-largest economy remained strong in April, underpinned by a pickup in industrial output and a rebound in exports,” Reuters reported.
Liquor makers, health care firms and chemical companies grew strongly.
Kweichow Moutai Co Ltd jumped 5.33 percent to 698.17 yuan (US$109.72). According to local media the Paper, the company named Li Baofang as its new chairman on Sunday night. Kweichow Moutai Co Ltd also saw a net profit of 8.51 billion yuan in the first quarter of this year, up 38.9 percent year on year.
Tsingtao Brewery Co Ltd surged by the daily limit of 10 percent to 47.25 yuan and Shanxi Xinghuacun Fen Wine Factory Co Ltd added 6.57 percent to 59.55 yuan.
“Liquor makers performed well as investors see them having potential to grow further,” said Qin Hong, analyst with Jingbailing Consulting firm.