China Minmetals Rare Earth Co Ltd

On the evening of August 7, multiple listed companies on the Shanghai and Shenzhen stock exchanges released positive announcements. Biwin Storage's holding subsidiary, Guangdong Core Harmony, plans to introduce external investors through a capital increase and share expansion. The total financing for this round will not exceed 600 million yuan, with external investors collectively acquiring no more than 23.0769 percent equity. After the capital increase, the company's shareholding will be no less than 52.5186 percent. Green Power plans to have its holding subsidiary invest in the construction of a 460-megawatt wind power project in Tianjin, with a total dynamic investment of approximately 2.475 billion yuan and a capital financial internal rate of return of about 19.24 percent. Focuslight Technologies plans to raise no more than 1.021 billion yuan through a private placement for projects including high-end optical interconnect core optical components. iSoftStone signed an agreement with Shijiazhuang Tiedao University and China Railway Construction Digital Intelligence Technology to jointly build an AI plus railway embodied intelligence common technology pilot base. Chaoying Electronics plans to invest 2.086 billion yuan to build a high-multilayer and HDI printed circuit board P3 project. Chinalin Securities plans to acquire a total of 94 percent equity in HNA Futures through a 202 million yuan agreement transfer, and will gain control after the transaction. Cambricon achieved operating revenue of 5.996 billion yuan in the first half of 2026, up 108.13 percent year-on-year, with net profit of 2.311 billion yuan, up 122.61 percent year-on-year. China Rare Earth reported net profit of 237 million yuan for the first half, up 46.53 percent year-on-year. China State Construction's controlling shareholder, China State Construction Engineering Corporation, received a shareholding increase loan support of no more than 900 million yuan from the Beijing branch of Industrial and Commercial Bank of China. TGOOD received a special stock repurchase loan commitment of no more than 540 million yuan from the Qingdao branch of Industrial and Commercial Bank of China. Zhejiang Shibao plans to raise no more than 1.394 billion yuan through a private placement for projects including the industrialization of automotive steer-by-wire systems.

*ST Shida has been placed under investigation by the China Securities Regulatory Commission for suspected illegal information disclosure in its 2023 semi-annual report. This week, all three major A-share indices closed higher, with the Shanghai Composite Index up 2.81 percent, the Shenzhen Component Index up 5.39 percent, and the ChiNext Index up 6.55 percent. In terms of individual stocks, over 3,900 stocks rose this week, with 122 stocks gaining 30 percent or more. The top gainer was Xintian Technology, which surged 97.81 percent. According to the Dragon and Tiger list, institutional seats made net purchases of 77 stocks this week, with Shengyi Technology topping the list with net institutional buying of 1.459 billion yuan. In addition, China Rare Earth disclosed a 46.53 percent year-on-year increase in net profit for the first half of 2026.

On August 7, the rare earth permanent magnet concept saw a sudden surge, with China Rare Earth hitting the daily limit up. Fangbang Electronics, Zhongke Magnetics, and Jiuling Technology rose over 10%, while Northern Rare Earth, Huahong Technology, and Galaxy Magnetics were among many stocks that followed the rally. In terms of news, praseodymium-neodymium oxide rose 6.4% month-on-month in July, with the average price up about 6.57% month-on-month. The average price of praseodymium-neodymium metal rose about 6.16% month-on-month, and the average price of praseodymium-neodymium oxide in the first half of 2026 surged 73.6% year-on-year. On the import side, rare earth ore imports fell 44.4% year-on-year in May, with cumulative imports from January to May down 3.3% year-on-year. Imports of medium and heavy rare earth ores from Southeast Asia shrank significantly. Recycled oxide output fell 19.5% month-on-month in June. On the policy front, the Ministry of Industry and Information Technology sought public comments on a benchmark table for discretionary powers under the Rare Earth Management Regulations. The Ministry of Commerce has improved the handling of reports on strategic mineral export control violations since July 1, with rare earths and other items now included in dual-use item export controls. CICC believes the rare earth industry supply will remain tight, with the global supply-demand gap expected to continue widening from 2026, maintaining an outperform rating on the sector. Industrial Securities noted that tightening export controls and slow overseas supply chain development are driving a revaluation of bottleneck assets in China's rare earth midstream. Soochow Securities proposed that export controls open up space for domestic substitution, bringing clear development opportunities for domestic substitution in high-end manufacturing.