China Rare Earth Shares Rise as Beijing Approvals Add to Trade Hopes

Dow Jones Newswires

By Tracy Qu

Shares of Chinese rare-earth companies rose after Beijing approved some export applications for the key industrial materials, which have been a sore point in trade tensions with the U.S.

China Rare Earth Holdings jumped 43% in early trade in Hong Kong Monday, while magnet producer Zhejiang ZhongKe Magnetic was 13% higher in Shenzhen.

China has "approved a certain number of compliant applications" of rare earth-related exports, and is "willing to further enhance communication and dialogue with relevant countries on export controls to facilitate compliant trade," the Ministry of Commerce said in a statement over the weekend.

That comes as Chinese and U.S. officials are set to meet in London for trade discussions, during which the U.S. is set to press their counterparts to speed up shipments of rare earths--critical minerals used in a wide range of applications from electric vehicles to electronics.

The meeting follows a call between Chinese leader Xi Jinping and U.S. President Donald Trump last week, fueling hopes of progress toward a more permanent trade deal after reaching a temporary truce to reduce tariffs in May.

Trump described the call as "positive" and said in a Truth Social post last week that "there should no longer be any questions respecting the complexity of Rare Earth products."

Speaking to reporters at the White House, he said: "We have a deal with China," adding that they need to straighten out some of the points, which have mostly to do with rare earths and magnets.

Write to Tracy Qu at tracy.qu@wsj.com

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