(Yicai Global) June 3 -- Chinese restaurant and small commodity stocks advanced today on the news that Shanghai is to allow the return of street stalls, once banned for being unsightly and unhygienic, to help boost the city’s economy as businesses struggle in the wake of Covid-19.

Shanghai will support specialty shops to carry out open-air stall operations, the Shanghai Observer reported today, citing the Shanghai Urban Management and Law Enforcement Bureau. Other cities such as Chengdu, Xi'an, Hangzhou, Zhengzhou, Nanjing and Qingdao have also recently proposed to sanction stalls.

Restaurant chains Yindu Kitchen Equipment [SHA:603277] and Xi’an Catering [SHE:000721] as well as small goods firm Zhejiang China Commodities City Group [SHA:600415] hit the exchange-imposed limit of 10 percent during trading today, ending at CNY11.84 (USD1.67), CNY4.79 and CNY4.60 respectively.

Despite their popularity, roadside stalls have been banned in China for some time because of the disruption they brought to traffic flows and to the communities they operated in. It was also difficult to monitor their food quality and safety.

While Shanghai is prepared to turn a blind eye to minor violations, the reopening of outdoor stalls does not mean a return to the poor hygiene levels and disorderly arrangements of previous times, the bureau said.

The city will closely manage operating times, locations and food offerings of the stalls, it said. Vendors must register with the local authorities and will be regularly inspected. They should minimize their impact on nearby residents as much as possible and should take care to dispose of waste properly, reduce oil and smoke levels and implement other sanitary measures.

Editor: Kim Taylor