Not all Chinese stocks are getting hammered by the escalation in a trade war with the U.S.
Investors piled into agricultural and gold stocks as other equities plunged following U.S. President Donald Trump’s decision to slap tariffs on at least $50 billion of Chinese imports, and then China announcing levies of its own on products including U.S. nuts and wine. Also included in Beijing’s 128-item hit list are steel products, pork, fresh and dried fruits, and ginseng.
The Shanghai Composite Index was down 4 percent as of 2:10 p.m. local time, leading declines among major equity markets and nearing its worst loss in more than two years. The Hang Seng Index in Hong Kong slid 3.3 percent, without a single stock posting a gain, unlike some large caps on the mainland.
Here are some of the companies faring relatively well Friday, and some that aren’t.
WINNERS
Agricultural companies
Seed producers and pig breeders jumped on the mainland as Beijing announced reciprocal tariffs on U.S. imports. Investors are speculating that the levies will make U.S. products less price competitive, said Zhang Gang, an analyst at Central China Securities Holdings in Shanghai.
Of the top 10 biggest gainers on the Shanghai Composite Index, seven were agricultural companies. Gansu Dunhuang Seed Co. rose the 10 percent daily limit, as did pig farm operator Hunan New Wellful Co. Harbin High-tech Group Co., a soybean processor, also jumped 10 percent. China is the biggest buyer of U.S. soybeans.
Gold miners
Investors flocked to safe havens like gold producers as sentiment turned risk-off, Zhang said. Gold producers topped the CSI 300 Index, led by Shandong Gold Mining Co. and Zhongjin Gold Corp., which climbed 6.4 percent and 5.6 percent, respectively.
Wine makers
Organic wine producer Wei Long Grape Wine Co. was among the gainers, advancing as much as 9.7 percent in Shanghai, while milk and wine producer V V Food & Beverage Co. added as much as 8.7 percent.
Source: Bloomberg
