Rare earth reserve approved

SHANGHAI: Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-tech Co, the rare earth listed unit of Baotou Iron & Steel Group, said its international trading unit received a nod from the autonomous region's government to build a strategic reserve of rare earth elements.

The company, which holds a 67 percent stake in the unit, was authorized by the Inner Mongolian government to set up the reserve in the autonomous region, it said in a statement to the Shanghai Stock Exchange yesterday.

Following an almost 10 percent surge on Tuesday, the company's shares sank 1.55 percent to end at 24.1 yuan yesterday. This compares with the benchmark Shanghai Composite Index's gain of 1.14 percent.