Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Chinese stock up on staples after government 'just in case' advice prompts confusion

Published Nov 03, 2021 05:46AM ET Updated Nov 03, 2021 10:01AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Two grandmothers with their granddaughter trade vegetables at a market on the outskirts of Shanghai, China June 3, 2021. REUTERS/Aly Song/File Photo
 
WB
-0.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Dominique Patton and Martin Quin Pollard

BEIJING (Reuters) - Beijing shoppers stocked up on cabbage, rice and flour for the winter on Wednesday, after the government urged people https://www.reuters.com/world/china/china-urges-families-keep-stores-daily-needs-ahead-winter-2021-11-02/#:~:text=SHANGHAI%2FBEIJING%2C%20Nov%202%20(,raised%20concerns%20about%20supply%20shortages to keep stores of basic goods in case of emergencies, though it assured them there were sufficient supplies after some panic-buying.

The Ministry of Commerce on Monday published a seasonal notice encouraging authorities to do a good job in ensuring food supplies and stable prices ahead of the winter, following a recent spike in the prices of vegetables and a growing outbreak of COVID-19.

But the ministry's advice to households to also stock up on daily necessities in case of emergencies prompted confusion, sending some rushing to supermarkets for extra supplies of cooking oil and rice.

China's cabinet late on Wednesday said it would guarantee supplies of daily necessities, including meat and vegetables, and stabilise prices, state media reported.

China's instructions also pushed up domestic edible oil futures as well as Malaysian palm oil.

"It's going to be a cold winter, we want to make sure we have enough to eat," said one woman loading rice on to a bicycle outside a supermarket in central Beijing.

A long line formed at the supermarket's cabbage stall, as people bought supplies of the vegetable that is traditionally stored at home and consumed over the winter months.

But many residents said there was no need to buy more food than normal.

"Where could I stockpile vegetables at home? I get enough for my daily needs," said a Beijing retiree surnamed Shi leaving another Beijing supermarket.

Others said they did not expect any shortages, particularly in the capital.

Government advice to residents to buy supplies ahead of the winter is issued every year, said Ma Wenfeng, an analyst at A.G. Holdings Agricultural Consulting.

"It is necessary because there is often heavy snowfall in the winter ... and it seems there will be some uncertainty about the weather conditions this year. So I think this is quite a normal matter," he said.

China's National Meteorological Center is predicting a plunge in temperatures over the weekend in the northwest, southwest and most central and eastern regions.

China's state broadcaster CCTV reported on Tuesday that there had been some "over-interpretation" of the ministry's advice.

"Currently, the supply of daily necessities in various places is sufficient, and the supply should be fully guaranteed," it quoted Zhu Xiaoliang, director of the ministry's Department of Consumption Promotion, as saying.

Some cities including Tianjin in the north and Wuhan further south have released winter vegetables from stockpiles for sale at lower prices in supermarkets.

But some panic-buying appeared to continue on Wednesday, with several people complaining online of empty supermarket shelves, attributed largely to a growing COVID-19 outbreak.

China reported its highest number of new locally transmitted COVID-19 cases https://www.reuters.com/business/cop/china-covid-19-cases-spike-ahead-communist-party-conclave-2021-11-03 in almost three months on Wednesday, including nine new infections in Beijing, the biggest one-day increase in the capital this year.

"Even bulk rice has been stripped off (shelves)," said a resident in the southern city of Nanjing, writing on China's microblog Weibo (NASDAQ:WB).

"There is uncertainty about the occurrence of the COVID-19 outbreaks. Once an outbreak occurs, people's livelihoods will be affected. That's why people are stocking up on winter supplies to avoid the impact of COVID-19," said Ma at A.G. Holdings.

Chinese authorities typically respond to COVID-19 cases by locking down entire communities where they occur, restricting movement in and out of affected areas.

Chinese stock up on staples after government 'just in case' advice prompts confusion
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email