Shunho's Stock Nearly Doubles Since Announcing Hemp Plan
Tang Shihua
/SOURCE : yicai

(Yicai Global) Jan. 29 -- Shares in Shunho New  Materials Technology have almost doubled in less than two weeks after  the Shanghai-based firm announced plans to grow and process industrial  hemp in China's southwestern Yunnan province.

The company's stock [SHE:002565] rose 3.01 percent  this morning to reach CNY7.88 (USD1.17) despite widespread selloffs over  concerns of a slowdown in the global economy.

Shunho's stock had hit the bourse's maximum allowed  daily increase of 10 percent for seven consecutive days after the  announcement on Jan. 17 that one of its units had obtained an industrial  hemp planting license and shares have expanded about 88 percent overall.

The same species as the marijuana strain which is a  controlled substance in much of the world, industrial hemp is a variety  of cannabis with tetrahydrocannabinol -- the psychotropic compound in  its often-banned cousin -- content of less than 0.3 percent.

Cannabis Sativa and its relative Cannabis Indica  yield the world's strongest natural fiber material, public information  shows, beating out stainless steel pound for pound.

Its main applications are in medicine, food and  healthcare, agriculture and feed, however. China's industrial hemp  acreage is over half the world's total, and the country owns several  bio-patents to the plant.

Shunho's Luxin Biological Pharmaceutical has wrung  an industrial hemp planting permit and approval to process hemp leaves  from local authorities in the province. The firm is expected to sign  deals with local farmers to get about 1,000 mu (66.7 hectares) of land for planting,  which should start in March, and it may increase planting area in  following years, according to the company's new  statement yesterday. 

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Keywords: Planting Permit , Industrial Hemp , Hemp processing , Stock Price , market value , Shunho New Materials