Mask-related Chinese shares surge, market demand soars

Source:Global Times Published: 2020/1/20 15:50:40

File photo:Xinhua

Chinese stocks related to drugmakers and face masks rallied as markets opened on Monday following the latest official report concerning the country's new strain of pneumonia.

Major domestic mask manufacturer Shanghai Dragon Corp, pharmaceutical and biotechnology firm Jiangsu Sihuan Bioengineering Co and antibiotics manufacturer Shandong Lukang Pharmaceutical Co all saw their shares hit the daily ceiling of 10 percent on Monday.

In comparison, stocks related to public activities such as airline, tourism and cinema went down on Monday.

A total of 136 new cases of the pneumonia were confirmed over the weekend in Wuhan, capital of Central China's Hubei Province, data from the Wuhan Municipal Health Commission showed on Monday.

As of 10 pm on Sunday, Wuhan has reported a total of 198 cases of the new form of viral pneumonia. Three patients died and 25 have been discharged from hospital.

New cases of the virus have been confirmed in other parts of China, with two patients receiving treatment in Beijing's Daxing district, and one confirmed and eight suspected cases in Shenzhen, South China's Guangdong Province. East China's Zhejiang Province has reported five cases of individuals across different cities suffering respiratory symptoms and fever.

A person close to the Shanghai Dragon Corp told the Global Times on Monday that they had previously manufactured medical masks, but that was during the outbreak of SARS 17 years ago. "We had received a [temporary] special requirement from the Shanghai government to only produce masks during that time, but our current business is textiles - making products like underwear," she said, adding that in order to manufacture medical masks, producers must first have a corresponding license from the government.

China's Spring Festival holidays are approaching, and this weekend hundreds of millions of Chinese people will be carried by public transport systems. Wearing a mask will be a simple and convenient precaution many will take. But the supply of masks will struggle to meet demand.

A salesperson from a health products store on Taobao.com told the Global Times on Monday that its popular surgical masks have sold out at its warehouse in Wuhan.

"Now many consumers are asking about the surgical mask, but we do not have the stock," he said.

Given that the warehouse will not resume its work until after the holidays, he suggested consumers go to hospitals or drug stores to purchase masks.

The product, priced at 129 yuan ($18.86) per box of 50 masks, had been removed from the online store's homepage as of press time.

Due to the tightening mask supply, some online sellers have increased the retail prices of masks. Prices of surgical masks even doubled within hours, some Chinese netizens complained.

For instance, the disposable N95 particulate respirator produced by US multinational 3M have witnessed their prices increase from 133 yuan to 299 yuan in a month on Taobao.com.


Posted in: SOCIETY,ECONOMY

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