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Listed companies safe from droughts, floods

By Yin Mingzhe (chinadaily.com.cn)
Updated: 2011-06-22 15:48

Battered first by droughts and now floods, the livelihood of the people and industrial output have been greatly affected, but most listed companies said it has been business as usual for their operations despite the adverse weather conditions, the China Securities Journal reported Wednesday.

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Recently storms hit several provinces, including Hunan, Jiangxi and Zhejiang. In Zhejiang province, the largest flood in 20 years hurt the Qiangtang River region and some dams encountered challenges, according to the newspaper.

But Zhejiang Shanxiahu Pearl Group Co Ltd, located in Zhuji city, Zhejiang province, told the reporter that the company was not affected by the rising floodwaters as its factory is located on higher ground and production continued as usual.

Water level has dropped along Qiangtang River, according to data from the Ministry of Water Resources. Its impact on the stock prices of listed companies in the region is also diminishing. Data showed on June 21 the stock prices of nine listed companies registered in Zhuji city rose to some extent.

In addition, the shift from drought to flood conditions will temporarily relieve the power shortage in the Yangtze River region, said an analyst from Orient Securities Co Ltd.