China's rare earths stocks jump as trade tensions escalate

China Rare Earth Holdings

26/08/2019 02:48

** Shares in China's rare earths-related firms jump on
Monday after Beijing and Washington engaged in rapid-fire tariff
escalation over the weekend
    ** Such stocks are sensitive to developments around
Sino-U.S. trade negotiations, amid speculation that rare earths
could be the next front in the spat between the world's two
largest economies
    ** Meanwhile, rare earth miners outside China, the world's
largest producer, have also seen increased interest after
Beijing hinted it would use its supply of rare earths as a
negotiating tactic in its trade war with Washington 
    ** U.S. President Donald Trump on Friday lashed back at a
new round of Chinese tariffs by heaping an additional 5% duty on
some $550 billion in targeted Chinese goods in the latest
tit-for-tat trade war escalation by the world's two largest
economies  urn:newsml:reuters.com:*:nL4N25J3II 
    ** Trump's move, announced on Twitter, came hours after
China unveiled retaliatory tariffs on $75 billion worth of U.S.
goods, prompting the president earlier in the day to demand U.S.
companies move their operations out of China  urn:newsml:reuters.com:*:nL2N25J0XP 
    ** Leading the gains, JL MAG Rare-Earth  300748.SZ , a
company that Chinese president Xi Jinping visited in May as he
surveyed the development of the rare earths industry in Jiangxi
province, surges as much as 10% 
    ** China Northern Rare Earth Group High-Tech Co Ltd
 600111.SS , China Minmetals Rare Earth  000831.SZ , Rising
Nonferrous Metals Share  000259.SS  and Shenghe Resources
Holding  600392.SS  advance between 2.1% and 3.5% 
    ** In Hong Kong, China Rare Earth Holdings Ltd  0769.HK 
soar as much as 14% 

 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))