China stocks climb as foreign capital flows back to A-shares
- Buying interests return to old economy stocks, with Kweichow Moutai up 1 per cent
- Analysts do not expect sustained rebound in Hong Kong and China stocks amid US China trade war uncertainties
China stocks ended higher Tuesday, supported by a return of foreign capital inflow and investors’ hopes on further economic stimulus measures.
In Hong Kong, the Hang Seng Index also finished higher on selective financials gains.
The Shanghai Composite ended 0.61 per cent, or 17.53 points higher, at 2909.91, its highest level since May 16. The CSI 300, which tracks blue chips listed on the Shenzhen and Shanghai bourses, was up 0.96 per cent, or 35.06 points at 3,672.26.
Buying interests returned to old economy stocks, with Kweichow Moutai up 1 per cent at 888 yuan, after investment bank CICC said in a note that it expects the liquor maker’s net profit and revenue may grow more than 10 times over the next decade. Foshan Haitian Flavouring was up 5.33 per cent at 98.78 yuan.
In Shenzhen, Wens Foodstuff was the top gainer on the Shenzhen Component Index, shooting up 7.06 per cent at 38.38 yuan. Its rise was in tandem with other pig-related stocks, as a gauge tracking these stocks on the two exchanges rose 3.38 per cent, outperforming the broader market.
