China's Gold Miners Gain as Investors Seek Haven Amid Trade War
Two top performers on the MSCI China Index are in the business
China's gold stocks are the latest haven for spooked investors sheltering from the trade war fallout.
Gold miners are among the top gainers on the MSCI China Index in the past five days. Zhaojin Mining Industry Co. in Hong Kong and Shandong Gold Mining Co. in Shanghai have surged at least 9%.
Others in the business also gained. Gansu Ronghua Industry Group Co., Yintai Resources Co. and Chifeng Jilong Gold Mining Co. have all advanced by at least 13% since late May. Zhongrun Resources Investment Corp., which produces minerals, rose by the 10% daily limit on Tuesday before paring gains to 7% at the close.
"Investors, some of whom are subject to a limit on cash holdings, are fleeing to the safest assets," Cheung said. "Equity investors are also choosing these stocks, which will benefit from the gold rally."
Companies in the gold business have benefited as escalating U.S.-China trade tensions hurt the outlook for economic growth, damping investors' risk appetite and triggering a flight from equity markets for safer investments.
No comments:
Post a Comment
Commented on MasterMetals