[Special Stock] China Halts Taiwan Snack Imports, Will Crown Confectionery Benefit?...Crown Je-gwa Hits Upper Limit

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Crown Confectionery recorded a daily upper limit price during trading on the 3rd following news of China halting imports of Taiwanese snacks. Crown Haitai Holdings and Haitai Confectionery & Foods also showed a surge of over 10%.

As of 2:50 PM that day, Crown Confectionery was trading at 11,150 KRW, up 29.80% (2,560 KRW) from the previous day. At the same time, Crown Haitai Holdings rose 25.07% (1,800 KRW) to 8,980 KRW, and Haitai Confectionery & Foods increased 21.71% (1,510 KRW) to 8,460 KRW.

Amid intensified US-China tensions triggered by US House Speaker Nancy Pelosi's visit to Taiwan, news that China has suspended imports of Taiwanese snacks sparked expectations that domestic confectionery companies would benefit.

According to Taiwan's United Daily News, China's General Administration of Customs announced late the previous night that it would suspend imports from some Taiwanese companies for violating registration-related regulations.

The list included companies such as Vigor Kobo (Weige Bingzi), well known for pineapple cakes, beverage producer Wei Chuan, snack producer Guo Yuan Yi, and ramen producer Wei Li Foods.

Park Sang-jun, a food and distribution sector researcher at Kiwoom Securities, said, "If a boycott is carried out against companies with high market shares, multinational companies could benefit," adding, "Whether actual sales benefits materialize is an issue to be observed." Regarding Crown Confectionery's surge, he explained, "Stock price volatility can be greater for companies with relatively smaller market capitalization."