2,000 yuan pickle only a sales gimmick
Updated: 2011-06-28 16:25
By Yin Mingzhe (chinadaily.com.cn)
A sales girl displays the mustard tuber package, which includes a silver bowl and a pair of chopsticks, costing 2000 yuan ($ 308.8) per 600 grams in Chongqing, on March 18, 2007. [Photo / CFP]
A report released by Citic Securities Co Ltd (CITICS) on an exorbitantly priced mustard tuber, a kind of pickle popular in China, is a stunt as the product has been on sale for several years and has little effect on the producer's profits, the Shanghai-based Dongfang Daily reported Tuesday.
Huang Wei, a chief CITICS analyst, released a research report June 24 saying Chongqing Fuling Hot Pickled Mustard Tuber (Group) Co Ltd (Fuling Mustard Tuber) will promote a new product called "Chenxiang Mustard Tuber" with a retail price of 2200 yuan per 600 grams.
In addition, the report suggests investors keep buying the shares of Fuling Mustard Tuber, the company is listed on the Small and Medium-sized Enterprise Board (SME Board) of the Shenzhen Stock Exchange.
However, a Fuling Mustard Tuber staff member revealed yesterday the product has been on sale for many years and another officer in its Shanghai office also confirmed this, according to the newspaper.
Huang told the reporter during an interview the Chenxiang Mustard Tuber is only a bluff, which will not produce any profit. He declined to answer the question about whether CITICS really did any research on the product.
According to Chongqing Business News, in 2007 this product was sold at the price of 2,000 yuan per 600 grams, while the average mustard tuber is only worth 5 yuan per 600 grams.
On Monday, the stock price of Fuling Mustard Tuber increased by 1.43 percent to 19.17 yuan per share, the Dongfang Daily reported.
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