[Asia Economy Reporter Minwoo Lee] As the Hong Kong National Security Law (Hong Kong Security Law) was overwhelmingly passed at the National People's Congress of China, concerns are growing that conflicts between China and the United States may intensify. In response, rare earth-related stocks are showing strength.
As of 10:02 AM on the 29th, T-Plex, classified as a rare earth-related stock due to its rare metal processing business, saw its stock price rise 11.7% from the previous day to 4,400 KRW. Digital Optic, a related company in which Capture holds about 48% of shares and which is engaged in wholesale and retail as well as import and export of non-ferrous metals and rare earth minerals, is also highlighted as a rare earth-related stock and is on the rise. At the same time, it is trading at 701 KRW, up 7.5% from the previous day.
Despite strong opposition from the United States, China's passage of the Hong Kong Security Law appears to have acted as a positive factor amid concerns over the rekindling of conflicts between the two countries. Since China accounts for 80% of the world's rare earth production, it is analyzed that domestic rare earth production companies will gain a windfall benefit.
On the previous day, China's state-run Xinhua News Agency reported that the Hong Kong Security Law was passed in a vote at the 3rd plenary session of the 13th National People's Congress held at the Great Hall of the People in Beijing. In response, U.S. President Donald Trump is expected to issue an official statement on the 29th (local time) regarding the enforcement of the Hong Kong Security Law and announce countermeasures. There are opinions that trade sanctions against China will be strengthened.
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