From oil to saffron: how US-Iran conflict is rattling Chinese retail investors
Retail investors on Chinese platforms probe companies about supply-chain risks and opportunities as tensions escalate in the Middle East
While oil dominates headlines amid the escalating US-Iran conflict, Chinese retail investors are zeroing in on a different concern: peppering listed companies with questions about how the turmoil could disrupt supplies of everything from fertilisers to pharmaceutical products that contain the prized spice saffron.
“Given that Iran accounts for more than 90 per cent of global saffron exports, which have now been suspended, will your company continue producing saffron-containing footbath packs and heat patches?” one investor asked Renhe Pharmacy, a Jiangxi-based pharmaceutical company listed in Shenzhen, on an investor interaction platform.
“Does the company have any saffron raw-material inventory on hand? If so, how long can it sustain production?” the investor added.
“Please call our customer service hotline,” answered the company.
The exchange illustrates how the Middle East conflict is reverberating far beyond energy markets, unsettling businesses and investors thousands of miles from the war zone.
Questions posted on interaction platforms linking Chinese investors with listed companies have ranged from concerns about exposure to the Middle East and possible supply-chain disruptions to whether the conflict could open up new business opportunities.