Shares of South Korean confectionery and packaged snack makers skyrocketed after the Chinese government announced its decision to temporarily halt the imports of Taiwanese pastries, baked goods, and sweets.
In what appears to be a retaliatory policy meant to put pressure on Taipei, Beijing announced the measure ahead of US House Speaker Nancy Pelosi’s planned visit to the island.
On Wednesday, shares of CROWNHAITAI Holdings Co. and Crown Confectionery surged 17.97% and 14.29% respectively.
Founded in 1947, Crown is the maker of sandwiched biscuit products named Sando, Couque D'Asse, and Big Pie.
Shares of Orion Corp. also rose 2.72%. Established in 1956 as Tongyang Confectionery Corp., the company is most famous for its Choco Pie product.
Experts say the reason why Crown shares have surged more than those of Orion is because of the former’s growth potential.
In the case of Orion, export to China makes up more than 40% of its total revenue, which leaves little room for further growth there.
Some caution against the rapid rise in share prices.
An industry insider told The Korea Economic Daily, “It is unclear how much South Korean snacks will replace Taiwanese treats in the Chinese market.”
Write to Sang Hoon Sung at uphoon@hankyung.com
Jee Abbey Lee edited this article.
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