China: Brewers shares soar on hopes for strong summer sales
Shares of Chinese beer makers soared in morning trade on Monday, June 7, on hopes for strong summer sales season with the UEFA football games set to begin in coming days, Morningstar.com reported.
Shares of Tsingtao Brewery Co. have gained as much as 6.3% on the Hong Kong exchange, while its Shanghai-listed shares have hit a record high with a surge of 10%, most stocks are allowed to fluctuate in a day in China.
China Resources Beer (Holdings) Co. was 4.2% higher while Beijing Yanjing Brewery Co. rose up to 6.4%.
The beer makers' gains significantly outperformed the broader market, with the benchmark Hang Seng Index falling 0.7% and the Shanghai Composite Index slipping 0.1%.
Analysts have been banking on the resumption of sports events globally as well as China's hot summer weather to boost beer consumption in the country, fuelling a rally in the sector since early May. Tsingtao's shares have gained over 20% in the past month in both Hong Kong and Shanghai.
"Summer is the traditional peak season for beer sales. We remain upbeat about Tsingtao Brewery's market share gains and product mix upgrade," said HSBC analyst Katharine Song.