CHINA’S shares ended higher yesterday, led by demand for smaller stocks that investors hoped would benefit from a boom in consumption during the Lunar New Year holidays.

    The benchmark Shanghai Composite Index rose 0.58 percent to 3,222.36, while the usually less-tracked Shenzhen Composite Index was up 1.94 percent at 1,600.05.

    The divergence between the blue chip-heavy Shanghai bourse and its more innovation and startups-driven Shenzhen counterpart partly reflected caution among investors, especially those active in Shanghai, before the weeklong public holiday that starts Wednesday.

    “Despite favorable factors such as the return of funds after the recent initial public offerings and easing liquidity conditions, market mood will be relatively cautious because of the approaching Lunar New Year holidays,” said Minsheng Securities in a report.

    Consumption-related sectors, including media, health care and telecommunications, led gains while index heavyweights such as banks and brokerages declined.

    Huayi Brothers Media Corp., one of China’s leading film makers, rose 3.49 percent, with Wanda Cinema Line Co. gained 1.66 percent.

    Among the losers, Citic Securities was down 0.55 percent, while China Merchants Bank lost 1.16 percent. (SD-Agencies)