AsianFin -- Shares of China’s rare earth producers jumped on Monday following Beijing’s announcement of tighter controls over the strategically important sector, which has been central to the country’s trade dynamics with the United States.

The Ministry of Industry and Information Technology outlined plans to implement a more rigorous monitoring system for domestic rare earth supply. Companies will now be required to report production data to the government on a regular basis, aiming to improve transparency and regulatory oversight across the industry.

Among the top movers, magnet supplier JL-Mag Rare-Earth Co. surged as much as 18% in Hong Kong. On the mainland, China Northern Rare Earth Group High-Tech Co. added up to 10%, China Rare Earth Resources and Technology Co. gained 8.5%, and Zhejiang Zhongke Magnetic Industry Co. rose 12%.

Analysts note that such measures typically favor larger, established producers, who are better equipped to comply with stricter reporting and operational requirements. Market participants interpreted the announcement as a positive signal for leading players, pushing rare earth stocks higher.