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Cao Li

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.
“Will the current situation affect your company’s imports of raw materials for fertiliser? Does the company plan to raise prices for any of its products in the first quarter?” one investor asked a Shandong-based fertiliser producer listed in Shenzhen.
Others were already looking at whether the conflict could drive demand in defence-related technologies.
“Drones have been widely deployed in the war … Does the company have any counter-drone products, or any related technologies and capabilities in reserve or under development?” another investor asked a Shanghai-listed technology firm based in Jiangxi.
Since the war erupted last Saturday when joint US-Israeli strikes killed Iran’s Supreme Leader, Ayatollah Ali Khamenei, Iran has effectively shut the Strait of Hormuz – a chokepoint through which roughly one-fifth of global oil and gas shipments pass – sending crude prices higher and plunging markets worldwide into turmoil.
Asia faces the greatest exposure among energy importers. Nearly 80 to 85 per cent of the oil and liquefied natural gas passing through the Strait of Hormuz flowed to Asian markets in 2024, primarily China, India, Japan and South Korea, according to Lazard Geopolitical Advisory.
About half of China’s crude oil imports transit the strait, the firm added.
Financial markets across the region have reacted sharply. South Korean shares plunged 12 per cent on Wednesday, the biggest drop in the country’s 46-year market history, while Hong Kong’s Hang Seng Index ended the week with its worst performance in four months.
Oil prices have also surged. Brent crude briefly climbed above US$87 a barrel on Friday morning after a midweek pullback from Monday’s sharp rally.
China’s three state oil giants – China National Offshore Oil Corporation (CNOOC), China National Petroleum Corporation (CNPC) and China Petroleum & Chemical Corporation (Sinopec) – were among the early beneficiaries, surging at the start of the week before giving back some gains as the rally cooled.

“Some energy sectors – especially oil and gas and the broader petroleum space – are drawing a lot of attention from the market,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International.
Even so, some investors are looking beyond energy stocks.
“With the US and Israel attacking Iran and the conflict escalating in the Middle East, could this lead to an increase in your company’s orders from the region?” one investor asked a Shanghai-listed medical equipment manufacturer.
“Maybe it’s time to build positions in robotics and artificial intelligence stocks,” one investor wrote on China’s popular investment forum Xueqiu.com after the sector’s recent slump. “I’ve had my eye on them for a long time.”


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From oil to saffron: how US-Iran conflict is rattling Chinese retail investors

Supply chain disruptions tied to the conflict could affect everything from fertiliser imports to pharmaceutical products containing saffron. Photo AFP

A worker sorts and cleans saffron filaments during its processing at the Novin Saffron factory in northeastern Iran’s Khorasan province. Photo: AFP

Iranian women pick up saffron flowers at a field in Khorasan province of northeastern Iran. Photo: AFP

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Shares in Hong Kong have been pummelled this week by the US-Iran war. Photo: Dickson Lee

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Hong Kong stocks staged a rebound on Thursday. Photo: Reuters

Chinese Premier Li Qiang delivers the government work report during the opening session of the National People’s Congress in Beijing on Thursday. Photo: Reuters

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The spike in energy costs has revived fears of a renewed bout of inflation, raising the risk of slower global growth. Photo: AFP

Oil imported through the Strait of Hormuz accounts for about 6.6 per cent of China’s consumption. Photo: Reuters

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Retail investors on Chinese platforms probe companies about supply-chain risks and opportunities as tensions escalate in the Middle East


Retail investors on Chinese platforms probe companies about supply-chain risks and opportunities as tensions escalate in the Middle East.


From oil to saffron: how US-Iran conflict is rattling Chinese retail investors

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Retail investors on Chinese platforms probe companies about supply-chain risks and opportunities as tensions escalate in the Middle East

Retail investors on Chinese platforms probe companies about supply-chain risks and opportunities as tensions escalate in the Middle East