Core Viewpoint - The article discusses a controversial transaction involving China Rare Earth (00769.HK) where 1,600 kg of tungsten bars were exchanged for a 14.3% stake in the company, raising questions about the valuation and legitimacy of the deal [1][18]. Group 1: Transaction Details - A Malaysian businessman, Wang Xinlan, successfully exchanged 1,600 kg of tungsten bars valued at 1.5 billion HKD, equating to 9,375 million HKD per ton, for shares in China Rare Earth [1]. - The transaction was completed on June 16, 2025, after the board approved it, despite ongoing disputes regarding the valuation and the legitimacy of the tungsten bars [18][19]. Group 2: Valuation Concerns - Founder Jiang Quanjun raised doubts about the actual value of the tungsten bars, questioning the methods used for their valuation [3][7]. - Reports indicated that the market price for high-purity tungsten bars (99.995%) was estimated to be between 1.5 million to 1.6 million HKD per ton, significantly lower than the price paid by China Rare Earth [12][17]. Group 3: Company Governance and Disputes - Jiang Quanjun was removed from the board due to debt issues and has since raised complaints about the transaction, claiming he was not fully informed during the approval process [22][25]. - The board of China Rare Earth responded to Jiang's complaints, stating they were unfounded and that he had previously agreed to the transaction [19][25]. Group 4: Operational Challenges - Following the transaction, China Rare Earth faced operational difficulties, including debt accumulation and legal issues involving its subsidiaries, which have led to significant financial strain [27][28]. - The company has been under scrutiny for potential asset misappropriation and has faced multiple lawsuits related to its operational entities [27].