China’s Heavyweight Index Climbs To Two-Month High As Foreign Investors Gobble Up Consumer Stocks

China’s stock index barometer CSI 300 posted its highest daily gain since July on Monday as overseas players gobbled up shares.

• The CSI 300 Index gained 3.2% to mark its strongest showing in over two months since early March.
• Overseas investors bought a record 21.7 billion yuan or $3.4 billion worth of A shares through Hong Kong links.
• Investors piled into consumer stocks with steady cash flows such as Kweichow Moutai Co. The liquor firm rose 6% after unveiling plans to double revenue by 2025.
• Financial stocks also posted gains, as Shanghai plans to cement itself as an asset management hub.
• The offshore yuan increased 0.2% versus the greenback to hit the 6.4 level, pushing state-owned lenders to slow appreciation.
• The currency has gained over 2.5% so far in the second quarter to be the top performer in Asia.
• An analyst attributed the foreign buying of A shares to the appreciation of the yuan, in line with expectations that the government could allow the currency to strengthen slightly to offset the import inflation.

600519: SHA is up 5.95%