“Nervousness” over supply crunch driving up seafood prices in China
Chinese seafood prices will continue to rise, according to a veteran watcher of China’s listed seafood companies.
The extension of the country’s fishing moratorium by one month (from May to September) has worried distributors and market vendors, according to Cheng Xiao Deng, an analyst following seafood firms for Tai Ping Yang Securities (also known as Pacific Securities).
Putting a “buy” recommendation on seafood firms listed on the two main Chinese exchanges, Cheng is particularly bullish about firms specializing in producing and distributing feed for the aquaculture sector.
In particular, Cheng likes the prospects of Fujian Tianma Science and Technology Group Co Ltd., which focuses on production and sales of special aquaculture formula feed, as well as the production and sales of fishmeal. Cheng also backs Guangdong Haid Group Co Ltd., a feed production giant that also advises on pig and aquaculture production systems.