Rare Earth Stocks Give Abundant Returns as Investors Pile In
- State media suggested materials may be used in trade war
- Share moves aren’t near rational levels, analyst says
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Returns for investors in Chinese rare earths stocks are looking anything but scarce.
Investors are piling into the sector on speculation the materials may be weaponized in China’s tit-for-tat trade war with the U.S. President Xi Jinping’s visit to a rare earth facility in Jiangxi last week fueled an initial rally, with shares surging again on Wednesday after a slew of Chinese media reports advocated the threat of using rare earths as retaliation against the U.S.