Why MP Materials Stock Blasted 6% Higher on Wednesday

Rare earth company MP Materials (NYSE: MP) saw a material jump in its share price Wednesday. The stock shot 6% higher thanks to ostensibly negative news from overseas. Such performance crushed that of the bellwether S 500 index; the leading market indicator slumped by 0.2% on the day.

China, a major source of numerous rare earth materials, is about to impose heavy curbs on the export of such goods. Its Ministry of Commerce will restrict exports of germanium and gallium to foreign companies that are licensed by the government agency specifically for that purpose.

According to Chinese authorities, the new regulation is critical for protection of its interests, and for bolstering national security. It comes into effect on Aug. 1.

Source Fool.com