Photo: IC Photo
As U.S.-China trade tensions continue, markets are becoming more sensitive to policy signals.
This time, the industry surrounding rare earths – which produces materials used in phones, electric car batteries and LED devices – is in the spotlight.
The stock price of China Rare Earth, a Hong Kong-listed rare earths company specializing in mining and production, has surged roughly 120% at the time of this post.
The surge happened after President Xi Jinping’s Monday visit to a rare earths enterprise in Jiangxi province, which was widely covered by Chinese media including the state-run Xinhua News Agency.
Many industry watchers believe the visit signals China's intention to further support the industry to hedge risks brought about by the trade war.
Rare earths companies listed on the Chinese mainland are also showing strong performances.Related: China Became Net Importer of Rare Earths in 2018