STOCKS | Agricultural Shares Retreat As Wanxiang Denong And Jinjian Rice Issue Risk Warnings

Agricultural planting shares retreated, with Duhuang Seed (600354) down 9.5%, State Investment Fengle (000713) off 9.2%, Shennong Seed (300189) down 8.6%, Denghai Seed (002041) lower 7.9% and Nongfa Seed (600313) falling 6.8%, according to ETNet. Wanxiang Denong (600371) issued a post-close trading risk warning on September 1, saying valuation metrics had clearly diverged from its fundamentals and showed signs of an obvious valuation bubble. The company said recent market discussion of super El Nino and other climate themes mainly concerns price swings in commodity corn and other farm products, while its core business is the research, production and sale of corn seeds and sits upstream of the agricultural chain. Its shares still rose 3.3% to RMB14.42. Jinjian Rice (600127) also issued a risk warning last night, saying market attention on the grain and food-processing sector was high, but the impact of such themes on its actual operating results remains highly uncertain. The stock fell 3.3% to RMB12.81.