Returns for investors in Chinese rare earths stocks are looking anything but scarce.
Investors are piling into the sector on speculation the materials may be weaponized in China’s tit-for-tat trade war with the US President Xi Jinping’s visit to a rare earth facility in Jiangxi last week fueled an initial rally, with shares surging again on Wednesday after a slew of Chinese media reports advocated the threat of using rare earths as retaliation against the US.