Chinese farming companies see a stock market boost as tariffs restrict US imports.
Chinese agricultural stocks bucked a global market slump on Tuesday, surging ahead as tensions between Washington and Beijing escalated.
Investors piled into China’s domestic farming sector, betting that a new wave of retaliatory tariffs would curb imports of US produce and boost demand for homegrown food. The trend defied a broader market rout that has wiped trillions off global stock exchanges.
Animal feed and seed company Dabeinong Tech saw its shares rise by 6.45% in early Tuesday trading, while pig breeding giant Wens Foodstuff climbed 5.1%. Other major players in the sector also gained ground, with Wellhope Foods up 6.3% and New Hope Liuhe rising 2.45%.
The rally came despite an overall market downturn sparked by US President Donald Trump’s announcement of higher import tariffs and China’s swift response. The tit-for-tat tariffs have sent shockwaves through global markets, fuelling fears of a drawn-out trade war between the world’s two largest economies.
However, China’s agricultural stocks have been on the rise, with an index of mainland-listed farming firms on the Hang Seng up 8.6% in April.
Deputy general manager of Tongheng Investment, Yang Tingwu, said China’s counter-tariffs are likely to benefit domestic producers in the short term, while reinforcing the country’s strategic push for food self-sufficiency.
“With fewer imported agri products, it’s a positive for the domestic sector,” he said. “In the long term, China sees grain and food production as vital to its national interests in the face of intensifying tensions with the US.”
In a further signal of its intent, China unveiled a 10-year agricultural development strategy on Monday evening. The plan aims to strengthen food security and increase domestic production by 2035.
Beijing’s most recent tariff announcement includes a 34% levy on all US goods, adding to earlier agricultural tariffs ranging from 10% to 15% imposed in March. The combined measures threaten to severely restrict trade in agri-commodities between the two countries.
While American farmers brace for impact, Chinese producers appear to be the early winners – at least in the eyes of investors.
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