China stocks rise on consumer staples boost; Hong Kong gains

  • 11/4/2021
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SHANGHAI, Nov 4 (Reuters) - China stocks rose on Thursday as consumer staples jumped, a day after the government advised people to stock up on essential groceries for the winter and as some food companies hiked prices. The CSI300 index rose 0.9% to 4,863.67 points at the end of the morning session, while the Shanghai Composite Index gained 0.6% to 3,521.07 points. The Hang Seng index added 0.3% to 25,092.23 points, while the Hong Kong China Enterprises Index was up 0.5%, at 8,904.66. ** Consumer staples gained nearly 3%, with liquor makers surging 3.5%. ** Shoppers in China stocked up on cabbage, rice and flour for the winter on Wednesday, after the government urged people to keep stores of basic goods in case of emergencies. ** Several Chinese food companies have increased the prices of their products since last month due to rising raw material and transportation costs. ** Ping An Securities said the increase in prices can lift companies’ profit margins, boosting share prices to some extent. ** The new energy sub-index went up 2.5%, while the automobiles sub-index jumped 3.7% ** Coal miners dropped 2.2%. ** China’s daily coal output is close to a record high this year amid a raft of measures to ramp up production, according to the state planner. ** Meanwhile, Hong Kong shares tracked Wall Street gains after U.S. Federal Reserve unveiled plans to taper its pandemic-era stimulus. ** Tech firms gained 1%, lifting the city’s Hang Seng Index. ** BYD Co Ltd jumped 6.5% and was the biggest percentage gainer on the Hang Seng Index, after data showed its total sales volume of new energy vehicles from January to October surged 212% year on year. ** Healthcare companies lost 2.1%. ** Chinese property developer Kaisa Group plunged 11.8% to an all-time low as poor October sales heightened worries about a liquidity crunch at the debt-strapped firm. (Reporting by Shanghai Newsroom; Editing by Ramakrishnan M.)

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