Do you know why China has the largest foreign reserve in the world? Answer: Because they keep making money. Do you think that Chinese companies will keep doing business if they keep losing money? Answer: No
Fact: China controls around 80 per cent of RE supply in the world. I only say 80 per cent. Some sources say 90 per cent. If a country has a monopoly position, price can be controlled up and down. Back to the above premise: Do you think that Chinese companies want to keep losing money when they have a monopoly power? Answer: No.
Predicted outcome: Chinese companies will use their monopoly position to increase RE price. Why? Answer: They want to make money. Please wait and see.
LYC Price at posting:
5.9¢ Sentiment: Hold Disclosure: Held
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