Shares shrug off quake impact

Updated 2017-08-21 10:30:18 China Daily

Most of Sichuan's listed firms say assets, operations and future prospects remain unaffected

Stock market players have sought to allay concerns about the impact of the Aug 8 killer Sichuan quake on the fortunes of listed companies based in the province.

"Until now, not a single stock has tumbled because of the earthquake," said Zhan Jianwen, senior investment manager at China Investment Securities Co Ltd, formerly known as China Jianyin Investment Securities Co Ltd.

The Shanghai and Shenzhen stock markets, however, did feel some market aftershocks, which were more of a kneejerk reaction to quake-related fears than anything else, he said.

To prevent market panic, several listed Sichuan companies have been proactively issuing statements confirming minimal or negligible impact of the quake on their assets, operations and future prospects.

Prominent names among them are Chengdu Xingrong Environment Co Ltd, Sichuan Shuangma Cement Co Ltd and Datong Gas Development Co Ltd.

Shares in Xingrong Environment ended at 5.59 yuan (.84) per share on Friday in Shanghai stock market, down 4.85 percent from 5.81 yuan on Aug 9, the day after the quake.

Datong Gas closed at 9.55 yuan per share in Shanghai, up 9.27 percent from 8.74 yuan on Aug 9.

However, Songcheng Performance Development Co Ltd, the country's first performing arts company to go public, said the quake has indeed affected its operations in a way.

On Aug 9, it said its two tourism resorts in Jiuzhaigou near the quake's epicenter were closed. Some of the resort buildings in the scenic area sustained damage, but the main theater is intact.

The Jiuzhaigou resort's halting of their operations will have a marginal impact on the company's full-year revenue, the company said.

Overall sales revenue was 1.09 billion yuan last year, up 195 percent year-on-year, according to Songcheng's latest annual report. The Jiuzhaigou resort contributed 149 million yuan, or nearly 15 percent of the total revenue of the company.

Market players are not sure if the quake aftermath might affect the prospects of Aba Big Jiuzhai Tourism Group, which has plans to list shortly.

Zhang Chi, president of Xin Ding Rong Hui Capital Management Co Ltd, told Beijing Business Today that the quake won't have much impact on Jiuzhai Tourism's listing plan because the China Securities Regulatory Commission will likely consider the special facts while assessing its IPO application.

It is unlikely that natural disasters would be a factor in this regard, the president reportedly said.

On the other hand, shares in pharmaceutical, healthcare, infrastructure and construction-related companies have risen, or are expected to rise, on the back of perceived demand for their products and services from relief and rehabilitation measures, and impending massive reconstruction in the quake-hit region, according to a research note from Northeast Securities.

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