SHANGHAI: China shares ended higher on Monday, underpinned by consumer and liquor stocks, though gains were limited by Sino-US tensions.
The blue-chip CSI300 index rose 1% to 5,625.92, while the Shanghai Composite Index added 0.5% to 3,624.24.
Leading the rally, the CSI300 consumer staples index climbed 4.7%, while the CSI300 consumer discretionary index gained 2.1%.
Liquor makers shined, with Anhui Gujing Distillery Co Ltd and Jiangsu Yanghe Brewery Joint-Stock Co Ltd both rising by their 10% daily trade limits.
Bucking the broader trend, shares of Apple Inc supplier Luxshare Precision Industry Co Ltd shed 4%, amid concerns about a patent infringement investigation filed against it from the United States.
“Liquor firms are favoured due to their stable earnings, though investors are also shifting to sectors with low valuations including banking and insurance firms, whose earnings are expected to recover on the back of China’s economic recovery,” said Zheng Zichun, an analyst with AVIC Securities.
Some of Shanghai’s top financiers said the development of China’s exchanges has been hampered in part by management shortcomings and proposed a raft of changes, including improvement in corporate governance, The Paper reported.
Worries over Sino-US tensions weighed on sentiment.
A US aircraft carrier group led by the USS Theodore Roosevelt entered the South China Sea over the weekend to promote “freedom of the seas” at a time of US concern about China-Taiwan tensions and Beijing asserting its maritime agenda.
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