BUSINESS Crop farming shares lead gains on Chinese A-share market Monday morning

BUSINESS

Crop farming shares lead gains on Chinese A-share market Monday morning

Global Times

15:05, December 28, 2020

Aerial photo taken on Feb. 29, 2020 shows villagers planting sugarcane at Zhishan Village in Pingshan Town of Luzhai County, south China's Guangxi Zhuang Autonomous Region. (Photo: Xinhua)

Crop farming shares led gains on Chinese A-share market on Monday morning, as investors were buoyed by a promising prospect of seeds and farming industry on heels of the just-concluded tone-setting Central Economic Work Conference, among which ensuring grain safety is one of the priorities.

As of Monday morning, shares of Win-All High-tech Seed Co, Shandong Denghai Seeds Co and Zhongnongfa Seed Industry Group Co surged by more than 5 percent.

Also, shares of Fujian Jinseng and Fengle jumped by the daily 10 percent limit. In particular, Fengle has soared for seven consecutive trading days since December 18, with its stock price surging 61 percent compared with seven trading days ago.

Market observers said that the rallying trend across the plantation sector is fueled by the message sent by the Central Economic Work Conference, which ended on December 18. At the meeting, Chinese top policymakers vowed to solve seeds and arable land issues.

China needs to enhance seed quality resources' protection and utilization and enhance the construction of seed banks, the meeting said, explaining that China should improve technical research of seed sources, as "this is also the bottleneck."

According to a report issued by China Galaxy Securities, as more policy packages from the central government level are about to land in 2021, the seeds industry - in particular the commercialization of genetically modified seed - is expected to witness fast track growth, benefiting relevant firms across the industry chain.

China stocks rose on Monday morning session. The Shanghai Composite Index gained 0.3 percent to 3,406.69 by the end of the morning session, while the CSI300 index rose 0.7 percent to 5,078.60

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