Two More Chinese Firms Hit Limit Up After Entering Hemp Business
Tang Shihua
/SOURCE : yicai
Two More Chinese Firms Hit Limit Up After Entering Hemp Business

(Yicai Global) April 18 -- Shares in two more Chinese firms soared by the  maximum allowed after releasing plans to conduct industrial hemp  business as investors remain transfixed on the emerging sector.

Shenzhen-based  Capstone Industrial [SHE:000038] closed 10 percent higher at CNY14.74  (USD2.20) after penning a cooperation framework agreement with Tenjove  Newhemp Biotechnology for a CNY1 billion (USD149 million) joint venture  to develop an industrial hemp industrial chain. The pair aim to use  blockchain to boost transparency and prevent the illegal use of  products. 

Tenjove is an indirect wholly-owned  subsidiary of US-listed Shineco. It has established a leading full-chain  business in industrial hemp planting and processing, as well as  cannabidiol active ingredient extraction.

Noposion  Agrochemicals, another Shenzhen-based company [SHE:002215] rose 10  percent to close at CNY9.21 after investing CNY90 million (USD13.4  million) to obtain a 52.9 percent stake in fertilizer maker Jinxin  Biotechnology. 

Nopoison will act as the hemp  business contractor for the target firm for three years. Jinxin Biotech  has also ensured that it will obtain a license to plant more than 10,000  mu of hemp.

Industrial hemp has become an  investment hotspot for China's stock market since this year. Many listed  firms announced their market entry, inflating their share prices. One  such stock is Shunho New Materials Technology [SHE:002565], which has  swelled fivefold in the three months since announcing plans for growing  the product.

Despite the craze in the capital  market, China still imposes strict controls on the cultivation of  industrial hemp and it has not approved the cultivation of any medical  cannabis nor the launch of any medicine containing tetrahydrocannabinol  and other active cannabinoids so far, the country's drug control  committee said in a statement in March. 

Editor: William Clegg 

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Keywords: Stock Market , Industrial Hemp , Block Chain Technology