rare earth Photo:VCG

Shares of China Minmetals Rare Earth Co hit the daily upper limit on Wednesday in trading on the Shenzhen Stock Exchange, after the listed company said that it plans to change the name of the listed entity to China Rare Earth Group Resources Technology Co (China Rare Earth) following a major merger.

The company said in a filing on Tuesday that the change was made after the actual controller of the company was changed to China Rare Earth Group Co, and the move was aimed at realizing the high-quality development of the rare-earth industry and enhancing its brand effect and market influence. 

The proposed change still needs final approval from the Shenzhen Stock Exchange.

The unveiling of China Rare Earth Group Resources Technology Co marks a new stage in the integration of the rare-earth industry, Weng Jieming, an official of the State-owned Assets Supervision and Administration Commission of the State Council, said at the inauguration ceremony for China Rare Earth Group Resources Technology Co on Wednesday.

Weng stressed that China Rare Earth Group Co should further deepen the integration and promote the development of rare-earth resources, smelting processing, technology research and other industry resources and assets, as well as business and  management integration.

Ao Hong, chairman of China Rare Earth Group Co, said at the ceremony that the group will strive to build the new listed company into a leading listed company in the industry with obvious professional advantages, outstanding brand quality, great market influence and strong core competitiveness.

China Rare Earth Group Co and Jiangxi Copper Co signed a strategic cooperation agreement on Wednesday to promote the integration of the rare-earth industry.

Following the news, shares of China Rare Earth Holdings in Hong Kong also jumped 15.19 percent on Wednesday.

The surge in the company's share prices came as a result of the injection of high-quality assets and a boost for the valuations of the company and the whole industry, Hu Qimu, deputy secretary general of digital-real economies integration forum 50, told the Global Times on Wednesday.

The name change, as well as the equity integration, will help the industry and supply chains to become stronger and bigger, and strengthen China's overall pricing power, Hu said.

China Rare Earth Group Co was formally set up in December 2021 through the merger of several key producers of the important mineral resources, involving China Minmetals Corp, Aluminum Corp of China and Ganzhou Rare Earth Group Co.

Rare earths are important strategic resources and key elements in the development of high and new technology and green applications.

China leads the world's rare-earth sector in terms of production and refining technologies. According to data from the General Administration of Customs, China exported 33,539 tons of rare-earth minerals in the first eight months of 2022, up 5.7 percent on a yearly basis. 

Global Times