Rare earth, telecom stocks lift up China markets after Xi, Huawei boost
- President Xi Jinping visited JL Mag Rare-Earth, a producer based in the southeastern province of Jiangxi, on Monday
- One rare earth stock surged 108 per cent in Hong Kong
China stocks climbed on Tuesday, as rare earth and telecommunication stocks led the advance following a company visit by President Xi Jinping and upbeat remarks by Ren Zhengfei, the founder of Huawei Technologies.
The Shanghai Composite Index rose 1.2 per cent to 2905.97. The Shenzhen Component Index climbed 1.9 per cent, and the ChiNext Index was up 1.7 per cent. The CSI 300 of large companies increased 1.4 per cent.
In Hong Kong, the Hang Seng Index slipped 0.5 per cent to 27,657.24.
Companies that make magnetic materials from rare earth elements surged broadly in China, extending their gains from Monday. The critical industry was thrown into the spotlight after Xi visited JL Mag Rare-Earth, a producer based in the southeastern province of Jiangxi, on Monday.
Speculations emerged that China may consider cutting its rare earth exports to the US as a way to retaliate in the trade war, even though foreign ministry spokesman Lu Kang asked the public to not “overthink”.