By Yifan Wang
Chinese food-and-beverage stocks are sharply lower in morning trade, as the sector pulls back from recent gains that were spurred by hopes for the continued recovery of consumer demand and appetite for defensive investments.
Inner Mongolia Yili Industrial Group Co., one of the country's top dairy products groups, was leading the morning downturn on Friday. Shares slumped 10% to 39.73 yuan (US$5.92) after the company's third-quarter earnings missed market expectations due to tepid demand for room-temperature products.
The decline comes after the stock's broad upturn this month. Shares hit a record closing high Thursday amid optimism that domestic spending will rebound further and increasing consumer demand for nutrition products in the wake of the pandemic.
Peers Bright Dairy & Food Co. and Panda Dairy Corp. were down 8.4% and 5.3%, respectively.
The liquor industry also weakened from its strong performance on Thursday. Leading Chinese-liquor company Luzhou Lao Jiao Co. fell 3.4% to CNY172.82 after jumping 10% during the last session after third-quarter net profit growth substantially exceeded investor expectations.
Write to Yifan Wang at firstname.lastname@example.org
(END) Dow Jones Newswires