China blue-chips rise to 28-month high, aided by liquor-maker and industry firms

China’s blue-chip index powered to a fresh 28-month high on Thursday, underpinned by stellar earnings reports from companies such as liquor maker Kweichow Moutai Group and as investors expect the Chinese government to push forward the Belt and Road initiative.

The blue-chip CSI300 index rose 0.42 percent to 3,993.58, while the Shanghai Composite Index gained 0.31 percent to 3,407.57 points.

Gains were led by consumer and industry firms, while healthcare and banking stocks retreated.

Investors’ attention shifted back toward earnings and economic fundamentals after the weeklong meeting and the country’s new leadership lineup revealed on Wednesday provided few major surprises.

Giving a big boost to confidence, Kweichow Moutai, based in Renhuai, Southwest China’s Guizhou Province and the world’s most valuable liquor maker, reported its net profit hitting 8.7 billion yuan ($1.31 billion) in the third quarter, up 138.4 percent against the same period a year earlier.

The firm’s sales also rose strongly, up close to 60 percent in the first nine months of the year to 42.5 billion yuan.

The shares of Kweichow Moutai leapt 7 percent to a fresh peak, leading a 3.1 percent jump in the consumer sector.

Industrial firms also rose, led by CRRC Group scaling an 11-month high, as investors expect the country’s largest train maker to benefit from the Chinese government’s efforts to push forward the Belt and Road initiative.