As the Chinese government continues its industrial restructuring to prevent 'bloodletting competition', domestic secondary battery sector stocks are showing a strong performance.
Shares of Enchem, which produces secondary battery electrolytes, were traded at 83,300 won on the KOSDAQ market at 9:20 a.m. on the 11th. The stock price rose by 16.18% (11,600 won) compared to the previous trading day.
At the same time, L&F, Samsung SDI, and ECOPRO BM also recorded stock price increases of around 5%.
The news that China's CATL, the world's top secondary battery company, has decided to suspend operations at its large lithium plant in Jiangxi for three months appears to have stimulated investor sentiment.
It is unclear whether CATL's recent production cuts are due to the company's management decision or in accordance with government policy. However, the market has interpreted it as a strong will from the Chinese government for restructuring.
The spot price of lithium carbonate in China has also continued its upward trend, entering around 70,000 yuan per ton.