Bloomberg reported that Xiamen Tungsten Co. stock rose by the 10% daily limit to 46.06 yuan, after the company stated it would acceletate the development of its rare earth business.
As quoted in the report:
The southeastern province of Fujian asked the company to take a leading role in helping to promote development of the region’s rare earth industry, Xiamen Tungsten said in a statement to Shanghai’s stock exchange late yesterday. Fujian wants to consolidate the industry by the end of this year and to foster a rare-earth company with 20 billion yuan ($3.1 billion) of output by 2015, the company said.
Xiao Shijun, a Beijing-based analyst at Guodu Securities Co., commented:
The company has enormous room for growth.