Shares of publicly-listed agriculture and food companies in China spiked in recent days against the backdrop of stricter COVID-19 measures across several regions in the country that have caused food supply shortages.
An ongoing lockdown in China was widened on Wednesday, 6 April, and now includes Shanghai and 22 other Chinese cities, together accounting for 22 percent of the country’s gross domestic product, according to Reuters.
Guolian Aquatic, currently the largest Chinese listed seafood firm by capitalization, has seen a strong rise in its share price in recent weeks, from CNY 4.72 (USD 0.75, EUR 0.66) on 28 January, 2022, to CNY 6.75 (USD 1.08, EUR 0.94) at close of trade on 4 April. The firm has invested heavily in the ready- and frozen-meals space.
The share price for CNFC Overseas Fishery Co., which has distant-water as well as seafood-distribution operations, has risen from CNY 5.70 (USD 0.91, EUR 0.79) to CNY 7.95 (USD 1.26, EUR 1.11).
Various other firms in the seafood, food biotechnology, and seed technology sectors rallied 3 to 5 percent on the Shanghai and Shenzhen exchanges, with the stock prices of some food companies surging even higher as investors anticipate rising demand for basic foodstuffs if further COVID-19 lockdowns are ordered.
“Stronger agriculture equities in China echoed with the recent escalation of COVID measures in the country’s biggest city, Shanghai, that started a lockdown this week triggering citywide panic buying of food, vegetables, and cooking ingredients,” agriculture and food market research agency Sitonia Consulting, which operates an office in Shanghai, reported in an investor’s note.
Photo courtesy of Robert Way/Shutterstock
