{"slug": "despite-geopolitical-tensions-chinas-rare-earth-producers-have-profitable-first", "title": "Despite geopolitical tensions, China’s rare earth producers have profitable first half", "summary": "China's rare earth producers reported strong first-half profits despite geopolitical tensions, with Shenzhen-listed China Rare Earth Resources and Technology posting a 46.53% year-on-year net profit surge to 237 million yuan (US$35.1 million), and Shanghai-listed China Northern Rare Earth (Group) High-Tech expecting net profit between 1.98 billion and 2.06 billion yuan, up 112.74% to 121.33%. Investment manager Guo Lingyu of Jianyuan Fund attributed the price surge to rapid AI supply chain expansion and surging demand for hardware components.", "body_md": "# Despite geopolitical tensions, China’s rare earth producers have profitable first half\n\nRapid expansion of AI supply chain has given rare earth prices a strong upwards trajectory, analyst says\n\nChina’s rare earth producers have reported or anticipated hefty first-half profits, with Beijing’s use of the strategically critical minerals as leverage in trade relations with Japan and the United States not appearing to impede normal activity.\n\n[of domestic mining investment](https://www.scmp.com/news/us/article/3363367/us-unveils-critical-minerals-deals-latest-push-counter-china?module=inline&pgtype=article)on Friday, widely viewed as diversifying the country’s rare earth supply chain away from China’s near-monopoly – has helped drive up product prices and also the valuations of listed Chinese firms.\n\nShenzhen-listed China Rare Earth Resources and Technology saw its first-half net profit surge 46.53 per cent year on year to 237 million yuan (US$35.1 million), the company said in an exchange filing on Friday.\n\nIts price-to-earnings ratio, an indicator of investor expectations, was 636.88 in February and currently stands at around 254, still very high compared with the market average.\n\nThe same ratio for Shanghai-listed China Northern Rare Earth (Group) High-Tech, the nation’s largest producer, reached 105.4 in February and now stands at about 58.\n\nChina Northern has said it expects a first-half net profit of between 1.98 billion yuan and 2.06 billion yuan, representing year-on-year growth between 112.74 and 121.33 per cent.\n\n“Rare earth prices have maintained a strong upwards trajectory driven by the rapid expansion of the AI supply chain and surging demand for hardware components,” said Guo Lingyu, an investment manager at Jianyuan Fund.", "url": "https://wpnews.pro/news/despite-geopolitical-tensions-chinas-rare-earth-producers-have-profitable-first", "canonical_source": "https://www.scmp.com/business/china-business/article/3363506/despite-geopolitical-tensions-chinas-rare-earth-producers-have-profitable-first-half?utm_source=rss_feed", "published_at": "2026-08-10 07:03:18+00:00", "updated_at": "2026-08-10 07:16:55.130582+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure"], "entities": ["China Rare Earth Resources and Technology", "China Northern Rare Earth (Group) High-Tech", "Jianyuan Fund", "Guo Lingyu"], "alternates": {"html": "https://wpnews.pro/news/despite-geopolitical-tensions-chinas-rare-earth-producers-have-profitable-first", "markdown": "https://wpnews.pro/news/despite-geopolitical-tensions-chinas-rare-earth-producers-have-profitable-first.md", "text": "https://wpnews.pro/news/despite-geopolitical-tensions-chinas-rare-earth-producers-have-profitable-first.txt", "jsonld": "https://wpnews.pro/news/despite-geopolitical-tensions-chinas-rare-earth-producers-have-profitable-first.jsonld"}}