Baotou Steel Rare-Earth Gains on Restructuring: Shanghai Mover
Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. (600111), China’s biggest producer, gained the most in a month in Shanghai after its parent signed restructuring agreements with nine other companies in the region.
The stock rose as much as 5.7 percent, the most since Nov. 28, to 23.39 yuan and traded at 22.76 yuan at 10:03 a.m. local time. That compares with a 1 percent decline in the benchmark Shanghai Stock Exchange Composite Index.
China, the world’s majority supplier of the elements used in batteries to hybrid-electric cars, is seeking to consolidate the industry and crack down on illegal production. The nation has approved a plan to set up “large” rare earth groups that will oversee the industry’s development and get government policy support, the Economic Information Daily reported today, citing an unidentified person.
Rising Nonferrous (600259) Metals Share Co. also gained in Shanghai, advancing as much as 4.6 percent. Aluminum Corp. of China Ltd. gained as much as 1.2 percent.
Baotou Steel Rare-Earth said yesterday in a statement its biggest shareholder Baogang Group signed accords with nine upstream companies which will be included in Inner Mongolia’s rare earth franchise system. Baotou Steel aims to hold controlling stakes in the companies after helping them with operations, financial management and environmental protection.
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