|China Molybdenum's Shares Advance on Report Mining of Metal to Be Limited
China Molybdenum Co., the nation's second-biggest producer, rose to the highest in almost two and a half years in Hong Kong trading after the China Securities Journal said the government may limit mining of the metal.
The stock climbed 5 percent to close at HK$7.81 at 4 p.m., taking its two-day gain to 34 percent since the journal on Oct. 29 cited an unidentified person as saying China would limit molybdenum mining from next year by classifying it as a national mining resource. Xi'an-based Jinduicheng Molybdenum Co., Asia's largest producer, rose by the 10 percent limit for a second day to close at 28.12 yuan at 3 p.m. in Shanghai.
"The jump of the shares is related to the report China will probably include molybdenum in the category of protected mining, like rare earth," Owen Liang, a Shenzhen-based analyst at Guotai Junan Securities Co., said today by phone.
He Feng, board secretary of China Molybdenum, based near Luoyang city in Henan province, didn't answer his mobile phone when called for a comment. Molybdenum is used to harden steel and is mainly used in construction.
China has been controlling molybdenum exports and set next year's export quota at 25,500 tons, unchanged from this year, the Ministry of Commerce said on Oct. 28.