CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 75-95% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

Shenghe Resources says to sell majority stakes in some businesses

By Reuters News

Oct 19 (Reuters) - Shenghe Resources 600392.SS said it would sell majority stakes for its smelting and separation business for 1.66 billion and 1.81 billion yuan ($248.44 million-$270.89 million) to a subsidiary of state-owned China Rare Earth Group.


  • Shenghe Resources will transfer a 51% stake at its Leshan Shenghe subsidiary, after spinning off the subsidiary's non-rare earth smelting and separation business, to a wholly-owned subsidiary of China Rare Earth Group, according to a company filing on Sunday.

  • Reuters exclusively reported on September 18 that China Rare Earth Group was in talks to acquire Shenghe Resources, a move that would consolidate Beijing's control over the sector.

  • Shenghe said on September 20 that its controlling shareholder had no plans for a stake transfer to external parties.

  • Shenghe will transfer 51% stakes at its other three subsidiaries handling rare earth smelting and separation -Quannan New Resources Rare Earth, Jiangyin Jiahua New Materials Resources and Zibo Jiahua New Materials Resources - to the same subsidiary of China Rare Earth Group.

  • Shenghe holds stakes in several overseas rare earth miners, most notably US government-backed MP Materials. The filings made no mention of MP Materials and said the deal was limited to Shenghe's rare earth smelting and separation businesses.

  • Following the completion of the stake transfers, Shenghe and the buyer will leverage their resource and industry strengths to secure production quotas and raw material supplies for the four companies while seeking to expand the companies' production, the filing showed.

  • Shenghe's shares were down 6.3% as of 0650 GMT.


($1 = 6.6818 Chinese yuan)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.