Shanghai stocks rally on real estate developers and consumer firms
Shanghai stocks rallied on Thursday led by real estate developers and consumer firms as investors hunted for bargains, while the central government’s pledge for tax cuts also gave them something to cheer about, analysts said.
The Shanghai Composite Index gained 1.22 percent to end at 3,160.53 points.
Nacity Property Service Co jumped by the daily limit of 10 percent to 38.63 yuan (US$6.15), while liquor maker Anhui Kouzi Distillery Co gained 4.48 percent to 43.15 yuan. Real estate developers as a whole also gained, with China Vanke Co surging 9 percent to 34.16 yuan.
Investors rushed to buy these stocks as they expected prices would rebound, said Chen Jian, investment consultant at Datong Securities.
Meanwhile, China's top alcohol brand Kweichow Moutai saw its sales revenue jump 49.81 percent year on year in 2017, according to its earnings report.
Premier Li Keqiang's pledge on Wednesday that China would cut value-added tax rates as part of a tax reduction package amounting to 400 billion yuan “has lifted confidence among investors on China’s economic outlook,” said Li Lifeng, chief strategic analyst at Sinolink Securities.