China Rare Earth Firms Rally After Strong Earnings, Beijing Plan

Shares in China’s major rare earths companies advanced after a swathe of strong first-quarter earnings and the unveiling of government plans for penalizing illegal production.

A flurry of positive earnings reports this week injected more optimism into a sector that’s enjoyed strong demand and high prices. China Northern Rare Earth Group High-Tech Co. rose by its daily limit of 10% after doubling its profits in the first quarter, while major magnet producer JL Mag Rare-Earth Co. jumped 8% after its earnings grew by a fifth.