A Chinese stock strategy that worked in 2019 when tensions got heated with the US is picking up again, showing mounting worry over the viability of a trade deal signed just months ago.
Miners of rare earths snapped back to life in May, with China Minmetals Rare Earth’s 27% rally leading double-digit monthly gains across the sector. Used in products from electric vehicles to military hardware, prices of the metals surged last spring on speculation China would use it as a bargaining chip in its trade war with the U.S. China produces about 70% of the world’s mined rare earths.