Chinese liquor shares strong despite declines in major indices

BEIJING - Shares in Chinese liquor makers were the strongest among all sectors on Wednesday, although major indices dropped for a second day.

The sub-index for the sector rose 1.46 percent, compared with a 0.79-percent drop in the benchmark Shanghai Composite Index.

Kweichow Moutai, China's top liquor brand, rose 1.37 percent to 688.08 yuan per share, currently the highest price on the A-share market.

Hebei Hengshui Laobaigan Liquor Co rose by the daily limit of 10 percent, rising for a sixth consecutive trading day.

Since the beginning of 2016, the liquor sector has seen strong recovery on the back of sound business performance, according to Sichuan-based Chuancai Securities.

"As high-end liquor products such as Moutai have been in short supply for a long time, the sector will continue the upward trend," the brokerage firm said.

The benchmark Shanghai Composite Index edged down 0.79 percent to 3,402.52 points, dropping for a second day after rising for six days.

The Shenzhen Component Index closed 1.04 percent lower at 11,462.11 points, also down for a second trading day.

Combined turnover of the two indices shrank to 524.4 billion yuan ($79 billion) from 603.7 billion yuan the previous trading day.

The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, lost 1.51 percent to close at 1,868.08 points.