China Could Lend Support to Domestic Rare Earth Companies

Bloomberg reported that shares of rare earth miners in China were on the rise on Tuesday on news that the government could move to support rare earth producers.
As quoted in the publication:

The Shanghai Composite Index rose 0.3 percent at the close, after declining the most in three weeks Monday. Xiamen Tungsten Co. and China Northern Rare Earth Group High-Tech Co. gained more than 3 percent, while Yantai Jereh Oilfield Services Group Co. led losses by energy companies. The volume of shares traded on the gauge was 27 percent below the 30-day average.
… “Speculation the authorities will take steps to cut capacity as well as boost buying for state reserves is lifting rare-earth producers,” said Shen Zhengyang, strategist at Northeast Securities Co. in Shanghai. “The ‘prudence’ note will have some impact on market sentiment as credit growth has been fueling stock gains and regulators may be concerned about over-leveraging.”

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