(Bloomberg) -- Shares of Chinese liquor makers drove advances in the mainland market, even as materials stocks fall due to concerns over power curbs that have hurt large swathes of manufacturing in the country.
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Liquor giant Kweichow Moutai Co. climbed as much as 10% while Luzhou Laojiao Co. also soared by the daily limit. The CSI 300 Consumer Staple Index jumped as much as 8.4%, set for the best day since 2008.
Pledges by Moutai's new chairman Ding Xiongjun at a Friday shareholders' meeting on long-term reforms, such as changes in distribution channels and pricing, should boost the prospects of rising selling prices as well as volumes, Sinolink Securities Co. analysts including Liu Chenqian wrote in a note. They expected an "acceleration period in earnings" next year and in 2023.
Ding said Moutai will focus on its main business and push for reforms in corporate governance, asset management as well as marketing and price systems, according to a statement posted on the company's official WeChat account.
Material stocks, however, were the leading losers in the benchmark on Monday as many provinces in the country continue to struggle to supply electricity to factories and even households. Inner Mongolia BaoTou Steel Union Co. and China Northern Rare Earth Group High-Tech Co. were among the biggest drags on the index, each tumbling by the daily limit.
The CSI 300 Index rose as much as 1.5%, with more than half of the 10 top performers being alcohol producers.
The rebound in liquor stocks follows months of selloffs in the shares due to high valuations as investors rotated into other sectors such as energy and utilities. The consumer staple subgauge of the CSI 300 index was still down around 30% from a February high despite Monday's spike, the worst among all sectors.
In Hong Kong, shares tied to cryptocurrencies also trended lower after China banned transactions and vowed to root out mining of digital assets. Huobi Technology Holdings, which started one of the world's largest Bitcoin exchanges about seven years ago, sank as much as 33%, the most ever.
High-yield Chinese developers listed in the city also fell after Sunac China Holdings Ltd. sought help from a local government in the eastern province of Zhejiang, the latest sign that the nation's property slowdown and the crisis at Evergrande are weighing on builders. Sunac China shares slid as much as 6.4% while distressed Guangzhou R&F Properties Co. dropped 4.8%.
(Adds declines in shares of cryptocurrency-related firms and high-yield Chinese developers in the eighth and ninth paragraphs.)
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