China's consumer stocks shine in new year, to benefit most from foreign inflows

Foshan Haitian Flavouring and Food Co

25/01/2019 05:01

** Shares in China's leading consumers firms have kicked off
2019 on a bullish note, as Beijing moves to bolster the cooling
economy by encouraging more domestic consumption, and as foreign
investors acquire more consumer shares via the stock connect
programme 
    ** Of the top 10 stocks most heavily held by Chinese fund
managers in 2018, four were consumer giants: liquor giant
Kweichow Moutai  600519.SS , China's biggest home appliance firm
Midea Group  000333.SZ , Gree Electric Appliances  000651.SZ ,
and Inner Mongolia Yili Industrial  600887.SS  
    ** The CSI consumer staples index  .CSICS  edges up 0.4 pct
in morning trade, having gained 7.9 pct this year, versus a 4.5
pct gain for the benchmark Shanghai index  .SSEC  
    ** Investors expect more stimulus measures to spur the
country's consumption to underpin growth after soft GDP data
 urn:newsml:reuters.com:*:nL3N1ZL4KV   
    ** Earlier this month, China said it plans to introduce
policies to boost domestic spending on items such as autos and
home appliances this year  urn:newsml:reuters.com:*:nL3N1Z83P9 
    ** So far this year, Kweichow Moutai leads the pack with a
14.7 pct gain, Midea Group  000333.SZ , Gree Electric Appliances
 000651.SZ , Inner Mongolia Yili Industrial  600887.SS ,
Wuliangye Yibin  000858.SZ , Foshan Haitian Flavouring and Food
 603288.SS , Suning.Com Co Ltd  002024.SZ  and Yonghui
Superstores  601933.SS  have gained in the range of 4.5-13.3 pct
    ** "Northbound investors have been overweighting
consumer-related sectors, with food & beverages and consumer
durables posting the largest inflows year-to-date," Gao Ting,
head of China Strategy at UBS Securities, wrote in report
    ** Gao expected northbound trade to see a significant inflow
throughout this year, adding the A-share internationalization
would bring in more inflows in 2019 
    

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Chinese consumer giants shine in new year     https://tmsnrt.rs/2HykcrN
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 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))