Shares of Chinese agriculture firms surged for a second consecutive day on Friday as more capital bets on the food sector following the nation’s signal that it would build up the agricultural industry.
Zhongnongfa Seed Industry Co and Hainan Shennong Technology Co surged to the daily limit of 10 percent at Friday’s opening.
The rally came after the nation announced it would attach more importance to food security and increase support for agricultural and rural development.
Chinese President Xi Jinping recently stressed the need to resolutely end food wastage and called for the promotion of thrift.
Calling the food waste issue shocking and distressing, Xi highlighted the need to maintain a sense of crisis regarding food security, especially amid the fallout of the COVID-19 pandemic and despite the fact that China has scored consecutive bumper harvests, the Xinhua News Agency reported.
A spokesperson of China’s National Bureau of Statistics on Friday said, “At present, our grain stocks are relatively sufficient.”
China’s grain production has been stable at more than 1.3 trillion jin (650 billion kilograms) for five consecutive years.
Summer grains also achieved a bumper harvest this year, setting a record high, with output increasing 0.9 percent over the previous year, said the spokesperson, adding that overall agricultural investment has gradually increased in recent years and there is a relatively good foundation for food stability.
Jiao Shanwei, editor-in-chief of cngrain.com, a website specializing in grain news, told the Global Times on Friday that the president’s instruction has boosted companies along the nation’s agricultural chain, which is quite long.
The market rally also reflected worries over the country’s food security due to the COVID-19 pandemic and souring China-US ties, TF Securities analysts said in a report.
“Agriculture and food have stood out amid market uncertainties caused by the COVID-19 pandemic. So more capital is showing increasing interest in investing in the sector to avoid huge losses,” said Jiao
Photo:Xinhua
