Far East Capital Newsletter
The wind is no longer in China's sails
20 Aug 2023

In This Issue

The wind is no longer in China's sails

Institutional money was being pulled out of the mining market last week with the leading stocks all showing heavy falls. This corresponded with a weaker iron ore price.

Sentiment turned down again just when it would have been reasonable to see it improving. Is this because of increasing concern about the direction of the Chinese economy, interest rates or something else? Read below the views on the latest economic indicators coming out of China, which suggest that there is more pain to come. Whatever, we seem to be lacking leadership at present. There is no compelling reason to buy, so the market is falling.

We should expect to see quite a few companies offering news flow on gallium and germanium in an attempt to take the spotlight, even though they will only ever be co-products at best. The question we need to ask is how much is it worth?"

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