Consumer, healthcare firms lead stocks higher

Chinese mainland stocks firmed on Wednesday, helped by a jump in defensive consumer staples such as big liquor producers, while resources shares curbed gains.

Sentiment remained largely positive although trade was thin, as investors expect stability in the financial markets ahead of a key meeting to be held next week.

The blue-chip CSI300 Index rose 0.33 percent to 3,902.69 points, while the Shanghai Composite Index gained 0.16 percent to 3,388.28 points.

Sector performance was mixed, with consumer and healthcare firms leading the advance, while materials sagged and banking stocks pared gains in the afternoon session.

Kweichow Moutai, China’s largest liquor maker by market value, climbed 1.01 percent to a record high, closing at 545.54 yuan ($82.7).

The major consumer index gained more than 2 percent to the highest since it was launched in 2005.

The large-cap firm has surged more than 60 percent this year, as investors chased sector leaders with steady growth.

“Market participants are now placing more and more stress on fundamentals, as they seek investment opportunities in sectors with solid growth and reasonable valuations, including consumer firms,” said Xu Wei, an analyst with Hongxin Securities.

Healthcare firms also rallied, led by Jiangsu Hengrui Medicine with a 2.41 percent gain, after the Chinese government pledged big healthcare reforms.

An index tracking major medical firms advanced to its highest since June 2015, having gained nearly 20 percent so far this year.

But resources firms continued to languish on the weakness in commodities.

For instance, the shares of China Molybdenum dropped 3.45 percent and dragged the material sector 0.80 percent lower.