Rising Nonferrous to Exit Stake in Zhujiang Rare Earth with RMB5.98M Listing

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Highlights

• Rising Nonferrous plans to sell its 3% stake in Zhujiang Rare Earth for RMB 5.98 million
• Transaction reflects broader industry consolidation under six major Chinese rare earth groups
• The sale may indicate strategic portfolio optimization within China’s rare earth industry

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In a move that signals potential consolidation or strategic divestment within China’s fragmented rare earths sector, Guangdong Rising Nonferrous Metals Import & Export Co., Ltd., a wholly owned subsidiary of Rising Nonferrous Metals Share Co., Ltd., has formally announced plans to sell its 3% stake in Guangdong Zhujiang Rare Earth Co., Ltd. (opens in a new tab) The transaction is listed publicly with a minimum price tag of RMB 5.98 million (approximately USD 834,335), according to a July 25 notice published by Asian Metal.

Upon completion of the sale, Rising Nonferrous will fully exit its equity position in Zhujiang Rare Earth, removing its remaining ownership ties to the firm.

Strategic Context: A Subtle Realignment?

Zhujiang Rare Earth is a recognized player in China’s midstream rare earth separation and refining segment. While details of Zhujiang’s current asset mix and profitability are not publicly available, the RMB5.98M listing price for a 3% equity share implies a modest overall valuation, suggesting this could be a minority divestment aimed at liquidity or balance sheet cleanup rather than a distressed exit.

Rising Nonferrous’s move may reflect broader portfolio optimization trends underway among provincial SOEs (state-owned enterprises) as China deepens its consolidation of the rare earth industry under six major groups, including China Rare Earth Group, Chinalco Rare Earth, and Northern Rare Earth. These central giants are increasingly absorbing smaller or regionally fragmented holdings as Beijing pushes for vertically integrated supply chains and greater global pricing control.

Investor Takeaway: Minor Transaction, Bigger Signal?

For retail and institutional investors tracking rare earth equities or related industrial policy shifts in China, this announcement, though small in scale, may hint at broader reconfigurations across the industry. Is Rising Nonferrous repositioning itself upstream? Or aligning capital for a new play in magnets or recycling?

This exit also raises new questions:

• Who will acquire the 3% stake—an industrial buyer, state-backed investor, or private entity?
• Does this suggest undervaluation of regional REE assets or a reprioritization toward larger-scale consolidators?

Answers may emerge soon, as deal terms are finalized.

Source: Asian Metal News, July 25, 2025