Hemp stars in a flat Shanghai market

Source: Xinhua | 2019-03-21

SHANGHAI stocks closed flat yesterday, with the downside moderated by a strong rise in hemp shares — covering everything from textiles to medicine.

The rise was helped by hemp company Shanghai Shunho New Materials Technology Co’s announcement that it would set up a US subsidiary.

The Shanghai Composite Index edged down 0.01 percent to close at 3,090.64 points. The Shenzhen Component Index fell 0.4 percent to 9,800.6 points, but the blue chip CSI300 index closed 0.04 percent higher at 3,835.44 points.

Turnover in the two major bourses totaled 779.9 billion yuan (US$116.4 billion), up 0.55 percent from the previous session. Hemp shares posted the biggest gains.

Pacific Securities says China’s industrial hemp industry is in the early stages of a potentially lucrative market.

Several domestic-listed companies have recently moved into the market, drawing the attention of investors. Tian Jin Global Magnetic Card Co, Shanghai Shunho New Materials Technology Co and three other companies listed on the A-share markets all posted rises hitting the 10 percent daily cap of 10 percent.