I came across these today.
They are cordycep militaris, known in Chinese as 虫草花 (chóng cǎo huā), which literally translates as 'worm grass flower. They are neither worm, grass or flower, but a type of cultivated mushroom.
The name is an attempt to cash in on a supposed connection with the unrelated but much more renowned and expensive Caterpillar Fungus (Ophiocordyceps sinensis). Allegedly, they have similar if weaker nutritional and medical benefits. And are 330元/kg as compared to the 100,000元/kg the real thing can fetch.
Still they look kind of pretty, I suppose and they are rather good in a chicken or duck soup. They become tasteless but have a nice texture. Any nutrients are supposedly transferred to the soup and they do give it a pleasant herbal flavour and interesting colour.