SHANGHAI: Chinese shares ended higher on Wednesday, driven by consumer firms as domestic investors reconsidered high valuations of growth stocks amid growing external risks, and on buying by offshore investors.
At the close, the Shanghai Composite index was up 0.79% at 3,479.95.
The blue-chip CSI300 index was up 0.94%, with the consumer staples sector up 3.34%, and the healthcare sub-index up 0.9%.
A sub-index tracking liquor firms led the gains, rising 4.68% as heavyweight distiller Kweichow Moutai added 3.1%.
Investor worries about the impact of U.S. sanctions weighed on shares of WuXi AppTec, which ended 1.41% lower. Analysts said worries about sanctions and possible U.S. rate hikes had prompted investors to rotate out of growth shares into more traditional sectors.
Bolstered by the rotation, blue-chip China Mobile rose by the daily limit of 10% to close at a record high of 67.43 yuan.
“Some money managers think the market is risky in the short term, thus they will move money into those sectors with low valuation and less risks,” said Ade Chen, general manager at Fund Investment in Guangzhou.
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