Markets Jan 22

Rare earth stocks rise again in China trading

Shares of rare earth companies continued to do well in markets that were otherwise flat; stocks of companies involved in new energy vehicles and photovoltaics were also buoyant

Rare earths gain again in China trading
Rare earth elements are enjoying greater demand from their use in electric vehicles, wind-power turbines and even for military use. Photo: Baijiuhao Baidu.

(ATF) After two consecutive days of rising prices, the rare earth market has seen some differentiation today, but the sector continues to perform strongly.

Shares of rare earth stock fell and rebounded, with Shengxin Lithium Energy hitting the daily trading limit, along with Huahong Technology, while in the afternoon Shenghe Resources and Yujing shares reached a climax again, but fell significantly in late trading.

For the rare earth sector, the hype will last longer and there will be repeated opportunities. Next week, it will be see lower-level stocks enjoy the boom, according to Flushing Finance. At the same time, investors were advised to pay close attention to changes in rare earth prices.

For Baotuan (new energy vehicles and photovoltaics) the rising market continued, with Amic, Hikvision and No. 9 all breaking new highs. The industry’s prosperity is higher than analysts expected.

Lithium battery upstream market prices smashed through the roof yesterday.

Today, Sichuan Energy Power, Shengxin Lithium Energy, and Yahua Group rose sharply, and Ganfeng Lithium Industry increased by more than 9%.

The high-quality stocks and high-prosperity stocks of the Baotuan industry are currently mainstream movers and are not expected to collapse for the time being. But the industry will also rotate.

Analysts said investors need to pay attention to the intervention points and grasp the rhythm of the market, otherwise it will be difficult to make money, as the big movers will not keep rising.

In contrast to all the good news for rare earth investors, today's indices diverged sharply.

The ChiNext index rose by more than 2%, but individual stocks generally fell. More than 3,000 shares closed green, and more than 80 stocks rose by more than 9%. The market profitability effect was average. 

The Shanghai Composite Index fell 0.4% to close at 3,606 points, while the Shenzhen Component Index rose 0.7% to close at 15,628 points. The ChiNext Index rose 2.27% to close at 3,358 points. 

The net outflow of Shanghai Stock Connect was 797 million yuan, and that of Shenzhen Stock Connect was 1.222 billion yuan.

In other sectors besides, rare earths, Covid-19 testing manufacturers, e-cigarettes, animal vaccines and other sectors had the largest gains, while property management firms, gaming, and the coal sector had the largest declines.

In terms of individual stocks, the Baotuan sector (electric vehicles) continued to be active. Core stocks such as Hikvision, Aier Ophthalmology, and Tongce Medical continued to record highs.

Resource stocks such as upstream lithium and cobalt rose sharply, and the photovoltaic sector continued to be strong. 

Short-term individual stocks have a significant loss-making effect. Nanguo Real Estate and other mid-level high-standards have a lower limit, while Rheinland Sports nearly reached the floor.


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