Kweichow Moutai Stock – China shares rise on consumer boost; Hang Seng bounces
* SSEC 1.37%, CSI300 1.95%, HSI 1.14%
* Distillers lead gains, lifted by overseas buyers
* Xiaomi leads HK tech gains after Reuters report on EV plan
SHANGHAI, March 26 (Reuters) – China shares rose on Friday as consumer firms rallied on buying from overseas investors, although major equities remained well below recent highs due to concerns over gradual policy tightening. ** At the midday break, China’s blue-chip CSI300 index was up 1.95%. The index remains down more than 15% from a record high touched on Feb. 18. ** The Shanghai Composite index was up 1.37% at 3,409.77 points, leaving it 8.63% below a five-and-a-half-year high touched in February. ** A sub-index tracking the consumer staples sector was up 2.56% at midday, led by distiller heavyweights Kweichow Moutai Co Ltd, up 2.13%, and Wuliangye Yibin Co Ltd , up 3.74%. ** The financial sector sub-index added 0.68%, the real estate index gained 0.51% and the healthcare sub-index jumped 3.51%. ** Refinitiv data showed strong inflows through the northbound leg of the Stock Connect as foreign investors bought shares. ** ANTA Sports Products Ltd rose 4.29% and Li Ning Co Ltd jumped 6.3% as internet users said they would support local brands after Nike and Adidas came under attack on Chinese social media over past comments about labour conditions in Xinjiang. ** Chinese H-shares listed in Hong Kong rose 1.39% to 10,893.35 and the Hang Seng Index was up 1.14% at 28,218.31. ** The Hang Seng was supported by a rebound in technology firms, with the Hang Seng tech index up 1.62%, boosted by Xiaomi Corp. ** Xiaomi jumped 6.69% after Reuters reported the company’s plan to make electric vehicles using Great Wall Motor Co Ltd’s factory. Great Wall’s Hong Kong shares soared 11.9% and its Shanghai shares rose by the 10% daily limit. ** The smaller Shenzhen index was up 1.94%, the start-up board ChiNext Composite index was higher by 3.13% and Shanghai’s tech-focused STAR50 index was up 2.17%.
Reporting by Andrew Galbraith in Shanghai; Editing by Amy Caren Daniel