China's consumer firms fall on worries over lofty valuations

Foshan Haitian Flavouring and Food Co

04/09/2020 03:47

** Shares in China's leading consumer firms slump amid
worries about lofty valuations  
    ** The CSI300 consumer staples index  .CSI000912  sheds as
much as 3.5%, on track for its worst session since July 24 
    ** Leading the fall, Foshan Haitian Flavouring  603288.SS 
drops as much as 9% after falling 6.8% in the previous session.
The stock is on track for steepest daily drop since Oct. 29,
2018 
    ** Now with a market capitalisation of more than 60 billion
yuan ($8.77 billion), it's now impossible to evaluate its
valuations using a reasonable evaluation system, Guosheng
Securities notes in report
    ** Wuliangye Yibin Co Ltd  000858.SZ , Inner Mongolia Yili
Industrial Co Ltd  600887.SS  and Kweichow Moutai Co Ltd
 600519.SS  ease between 1.8% and 3.7% 
    ** Talking about the whole consumer sector, analysts at
China Galaxy Securities said in report that "we now no longer
sing a song of praise to record-breaking consumer players"  
    ** Including today's fall, the consumer staples index is
still up more than 50% this year, thanks partly to Beijing
continued efforts to spur domestic demand amid the coronavirus
outbreak 

($1 = 6.8407 Chinese yuan)

 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))