After a 180-degree turn of CCP’s epidemic prevention policy, mainland stocks remain sluggish, but stocks of pharmaceutical companies and funeral service companies have soared, according to a Dec. 13 media report. The week started with a continued slump in Chinese stocks and a drop in the CNY from a near three-month high, as investors worried that a rise in infections could disrupt consumption and manufacturing. On the 12th, investors snapped up shares of mainland drugmakers, mask makers, PCR testing companies and funeral service providers. People seemed to anticipate that the lifting of the Zero-Covid policy would trigger mass infections and deaths.
Shares of Guangzhou Baiyunshan Pharmaceutical and Hualan Biological Engineering, each raised up more than 10 percent in the past five trading days, and Shanghai Fosun Pharmaceutical, up 7 percent, as strong demands for antipyretics and other drugs. Shares of Shijiazhuang Yiling Pharmaceutical, which makes Lianhua Qingwen , rose 11% in the same period, and this stock has gained 70% since the end of October. By comparison, the CSI 300 index fell 0.3%. The Shanghai-based Fushouyuan International Group, the largest funeral service provider and cemetery seller in communist China, also attracted many investors. Its stock in Hong Kong exchange is up 6 percent from a week ago and is up 60 percent since the end of October. And the company has been stagnant for much of the past year.
Observers pointed out that the sudden policy u-turn of the CCP regime’s policy without necessary preparations, caused chaos such as widespread infections, shortage of drugs and overcrowded hospitals. People’s fear of uncertainty raised concerns about the rising number of deaths and hospitalizations, as well as stock market shocks. The CCP has always been able to take a desperate path with what the CCP call: “Chinese characteristics”, while innocent people have to pay a heavy price for it.