Stocks surge as coming reforms outlined

Source: Xinhua | 2019-01-16

Chinese stocks soared yesterday, reversing the previous losses after several government institutions outlined details of planned reforms for this year.

Consumer and brokerage stocks led the rebound.

The Shanghai Composite Index surged 1.36 percent to end at 2,570.34 points. Turnover jumped to 137.2 billion yuan (US$20.31 billion) from 116.2 billion yuan on Monday.

The smaller Shenzhen Component Index also soared 1.86 percent to 7,547.35 points, and the blue chip CSI300 index closed 1.96 percent higher at 3,127.99 points.

Stocks of 49 A-share companies rose sharply, hitting the daily cap of 10 percent.

Consumer shares, including the food and beverages, household appliances and catering and tourism sectors, were among the biggest gainers.

Liquor companies led the boom, with shares of seven A-share companies including Shede Spirits Co, Shanxi Xinghuacun Fen Wine Factory Co and Tsingtao Brewery Company hiting the 10 percent cap.

Stocks related to the reform of state-owned enterprises performed strongly, after Lian Weiliang, deputy director of the National Development and Reform Commission highlighted the importance of the mixed-ownership reform of SOEs at a press conference.

The commission will redouble its efforts on SOE reform.