Asia Bizz: Rare earth producers’ shares have soared to a new level in the Chinese markets. It was the first time in six days the markets soared in China on Wednesday, after a series of consistent slump. As per reports the Shanghai Composite Index was higher by 0.69% or by 18.54 points closing at 2751.53 points.
The Shenzhen Component Index on the other hand too gained around 0.42% and closed on an impressive 12,114 points. One of the main reasons that the Chinese market had slumped, is because of the massive inflation in the country, and it was worst seen in the month of November. According to the statistics, the gainers outnumbered losers in the market.
Rare earth producers are having a great time at the stock market, as their shares were sky high, especially after the announcement of slashing the rare earth export quotas from the first half of 2011. The ministry has announced that it will be exporting only 14,446 tonnes of rare earth in the first half of next year, which is exactly a 11.4% drop compared to the year before.