HK-listed Chiho soars; China sets new standards for scrap metals

Chiho Environmental

20/01/2020 06:40

** Hong Kong shares of Chiho Environmental Group Ltd
 0976.HK , one of China's biggest scrap metal firms, soar as
much as 55% to HK$0.62, the highest since Oct. 8, 2019 
    ** Stock later trims gain to trade at HK$0.57, still up
42.5%
    ** China's market regulator published new standards for
high-grade copper scrap and aluminium scrap metal on Sunday,
shedding some light on what material will be allowed into the
country from the second half of this year  urn:newsml:reuters.com:*:nL4N29P06Z
    ** Chiho is viewed to benefit from the new rule as it had
set up a metal recycling joint venture late last year in
Thailand, responding to China's ban on imports of mixed metal
scrap. It said changes in waste and renewable resources in
various countries have put the firm in an advantageous position 
    ** Chiho has not responded to a request for a comment about
the impact of new rules and the stock's rally
    ** A China-based scrap copper importer and an industry
official both described the rules as "very strict," although a
scrap aluminium importer said they were not as severe as feared 
    ** Chiho has underperformed the Hang Seng Commerce &
Industry Index sector  .HSNC  by 7.1 percentage points in the
past one month
    

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)