Are you ready to make 2025 a financially healthy year?
The beginning of a new year is the perfect time to set intentions and make positive changes to your portfolio. These five New Year’s resolutions can make you a proactive investor so you can better control your financial portfolio in 2025.
2024 was a good year for the stock market. It had its volatile moments, which may have led you to sell positions too soon or miss out on big, bullish moves. But now it’s time to leave behind the challenges of 2024 and embrace what’s ahead. The stock market’s future price action rests on uncertainty; the best way to prepare is to take charge of your financial destiny, and to be open to participating and embracing investment opportunities that arise.
Resolution #1: Think Long-Term
With an incoming US president and administration, there will likely be broad changes across the economic landscape. Volatility could be high at times, especially when the impact of changes may be uncertain. Unless short-term day trading is your thing, it’s best not to get hung up on short-term changes.
A massive selloff in one day shouldn’t lead you to make panic selling decisions. Instead, look at a longer-term chart, such as a monthly or weekly one, to get a picture of the overall trend. If an uptrend is still intact, there’s no need to panic sell. Monitor key support levels closely. A downside breakout should be an alert to reevaluate your investments and determine if the reason behind your investment decision is still valid.
The weekly chart of the S&P 500 ($SPX) below shows the uptrend in the index is still going strong. Add your support levels to the chart, add it to one of your ChartLists, and monitor it closely.
FIGURE 1. WEEKLY CHART OF THE S&P 500. The index is trading above its 50-day moving average and the moving averages—50-, 100-, and 200-day—are sloping upward.Chart source: StockCharts.com. For educational purposes.
Resolution #2: Adapt to Changes
With policy changes in Washington, certain sectors and asset classes will outperform others. There’s a lot of talk about tariffs, tax cuts, and geopolitical tensions, but it’s about what policies are implemented and tensions that flare up that will make a difference.
The stock market is overextended and could remain that way during most of 2025 with bouts of volatility. Keep an eye on the chart of the Cboe Volatility Index ($VIX). A rising VIX implies investors are getting nervous, which should alert you to become weary. Keep an eye on other sentiment indicators such as the American Association of Individual Investors Bull and Bear indicators (!AAIIBULL and !AAIIBEAR) and the National Association of Active Investment Managers Exposure Index (!NAAIM). Monitoring sentiment indicators will give you a pulse of the market.
Resolution #3: Review Your Portfolio
Your portfolio is an asset like your home or car. Every so often, it needs a maintenance check, so set up some time to review your investment portfolio. It could be monthly, bi-monthly, or quarterly.
Start with a bird’s-eye view of your portfolio. Is it heavily weighted in some sectors? Are your holdings diversified across different asset classes? Which stocks are your strongest performers? Which ones are your weakest? Are there asset classes you’re not participating in that you should consider? There are several moving parts, which is why it’s important to set up your StockCharts Dashboard panels in a way that helps you monitor the overall market and your portfolio holdings.
It’s also worth broadening your horizons and learning about different trading instruments, such as options. StockCharts has introduced the OptionsPlay Add-On which allows you to select optimum options strategies for stocks. If you’re an options trader, you’ll want to explore this tool.
Resolution #4: Get Organized
Some extra leg work on the front end can save you a lot of time when reviewing your portfolio. Build your ChartLists with all your portfolio holdings. Make different lists if you have more than one investment account. For example, if you have more than one retirement account, create one ChartList for your 401(k), another for your IRA, and another for your Roth IRA.
Once you’ve built your ChartLists you can view them in different ways — Summary (view holdings in a tabular format), ChartList View (stacks all charts so you can scroll vertically to view), and Performance (tabular view of the performances of all stocks and ETFs in your list) — to name a few. Explore the different ways to view your ChartLists and select one that works for you. Think of how much time you can save when you’re more organized.
Resolution #5: Keep a Trading Journal
Making investment decisions can be complicated. Investing involves continuous learning and understanding yourself. Let’s face it — most of your investment decisions stem from emotions and often you forget your reasons for investing in a security. Noting down the thought processes that go through your mind when making investment decisions helps you understand yourself better and makes you a smarter investor.
Reviewing your notes helps you identify which investment decisions were well thought out and which were based on emotions. While StockCharts doesn’t offer a trading journal, you can add comments to your charts. In SharpCharts, under Saved Charts (left-hand menu), click on Chart Comments and add whatever thoughts go through your mind when you view a chart. When you have time to focus on your journal, you can add your comments and other important details.
The bottom line: The stock market is full of opportunities. Have an open mind as we step forward into 2025.
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.
In this video, Mary Ellen highlights whether to buy last week’s pullback. She discusses the rise in interest rates and why, as well as which areas are being most impacted. Last up, she reviews potential winners with new Trump policy, how to spot a downtrend reversal, and the signals that you should use to exit a stock.
This video originally premiered December 27, 2024. You can watch it on our dedicated page for Mary Ellen on StockCharts TV.
New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.
If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.
After suffering a brutal selloff in the week before this one, the Nifty spent the truncated week struggling to stay afloat just below the key resistance levels. With just four working days, the Nifty resisted each day to the 200-DMA and failed to close above that point. The trading range got much narrower, and the Nifty oscillated in just 291.65 points before closing with a minor gain. The volatility also cooled off as compared to the previous seek. Against the surge of 15.48%, this week saw India VIX declining by 12.17% to 13.24. Following strong consolidation, the headline index closed with a modest weekly gain of 225.90 points (+0.96%).
From a technical perspective, we are now at a very crucial juncture. On the one hand, the Nifty has closed below the 200-DMA placed at 23861. On the other hand, the Index is just above the 50-week MA at 23568. Rounding off, this puts Nifty in a very fragile range of 23860-23500. The Nifty will have to stay above the 23500 level; any violation of this level will instill prolonged weakness in the markets and push them into intermediate corrective trends. It also needs to be noted that the technical rebound would be sustained only if Nifty is able to cross and close above its 200-DMA. The longer the Nifty stays below 200-DMA, the more vulnerable it will be to testing the 50-week MA again.
Given the holiday season, no major moves are expected globally. The Indian markets are likely to start on a quiet note. The levels of 24000 and 24150 are likely to act as resistance points. The supports come in at 23600 and 23450.
The weekly RSI is 43.74; it stays neutral and does not show any divergence against the price. The weekly MACD is bearish and stays below the signal line. A Spinning Top occurred on the candles, depicting the market participants’ indecisive mindset.
The pattern analysis shows that the Nifty has retested the 50-week MA placed at 23568 again. While the Nifty has closed above this level following a modest rebound, it remains below the crucial 200-DMA. This means that so long as the Nifty is within the 23860-23500 zone, it is unlikely to adopt any sustainable directional bias. A trending move would occur only if the Nifty takes out 23860 on the upside or ends up violating 23500 levels.
Overall, it is important to observe that the markets are not totally out of the woods yet. So long as they are trading below the 200-DMA, they remain vulnerable to a retest of the 50-week MA. A violation of this level would mean a prolonged period of incremental weakness for the markets. It is recommended that all fresh buying must be kept defensive while keeping leveraged exposures at modest levels. For a rebound to sustain, it is immensely important for the markets to cross and close above 200-DMA. Until this happens, we need to approach the markets on a cautious and highly selective basis.
Sector Analysis for the coming week
In our look at Relative Rotation Graphs®, we compared various sectors against CNX500 (NIFTY 500 Index), which represents over 95% of the free float market cap of all the stocks listed.
Relative Rotation Graphs (RRG) continue to show Nifty IT, Banknifty, Services Sector, and Financial Services indices inside the leading quadrant. Although these groups are showing some slowdown in their relative momentum, they will likely continue outperforming the broader markets relatively.
The Midcap 100 index shows sharp improvement in its relative momentum while staying inside the weakening quadrant. The Nifty Pharma index is also inside this quadrant.
The Nifty PSE, Media, Infrastructure, Energy, Auto, Commodities, FMCG, and Consumption sectors are inside the lagging quadrant. They are likely to underperform the broader markets relatively.
The Nifty Metal index is inside the improving quadrant; however, it is rapidly seen giving up on its relative momentum. Besides this, the Realty and the PSU Bank indices are also inside the improving quadrant. They are expected to continue improving their relative performance against the broader markets.
Important Note: RRG charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.
Quetzal Copper Corp. (TSXV: Q) (‘Quetzal’ or the ‘Company’) is pleased to announce that it closed a first and second tranche of a previously announced non-brokered flow-through and non-flow-through private placement (the ‘Offering’) for gross proceeds of C$1,918,425 (collectively, the ‘First Tranches’).
Under the First Tranches, the Company issued an aggregate of 11,284,853 flow-through units at $0.17 per unit (the ‘FT Units‘). Each FT Unit consists of one flow-through common share (the ‘FT Share‘) and one half of a warrant. The Company issued 5,672,427 warrants as part of the FT Unit issuance. Each whole warrant exercisable at $0.25 per share for 24 months from the issuance date (the ‘FT Warrants‘).
The Company paid cash finder’s fees in the amount of $82,000 and issued an aggregate of 482,353 finder’s warrants (the ‘Finder’s Warrants‘) in connection with the First Tranches. The Finder’s Warrants are non-transferable and are exercisable at $0.25 per share for 24 months from the issuance date.
The Company plans to use the funds from the FT Units to initiate its drill program at its Princeton project in British Columbia immediately. The Princeton Project has copper targets just 5 km from the active Copper Mountain Mine.
The gross proceeds from the sale of the FT Shares will be used by the Company to incur eligible ‘Canadian exploration expenses’ that will qualify as ‘flow-through critical mineral mining expenditures’ as such terms are defined in the Income Tax Act (Canada) (the ‘Qualifying Expenditures’) related to the Company’s Princeton and Dot projects in British Columbia, Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Shares effective December 31, 2024.
The securities underlying the FT Units are subject to a statutory hold period in Canada ending on the date that is four months plus one day following the issuance date.
About Quetzal Copper
Quetzal is engaged in the acquisition, exploration, and development of mineral properties in British Columbia and Mexico. The Company’s principal project, Princeton Copper, is located adjacent to the Copper Mountain mine in southern British Columbia. The company currently has a portfolio of three properties located in British Columbia, Canada and one in Mexico.
Quetzal Copper Limited Matthew Badiali, CEO Phone: (888) 227-6821
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
The information contained herein contains ‘forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995 and ‘forward-looking information’ within the meaning of applicable Canadian securities legislation. ‘Forward-looking information’ includes, but is not limited to, statements with respect to the activities, events, or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, planned exploration activities. Generally, but not always, forward-looking information and statements can be identified by the use of words such as ‘plans’, ‘expects’, ‘is expected’, ‘budget’, ‘scheduled’, ‘estimates’, ‘forecasts’, ‘intends’, ‘anticipates’, or ‘believes’ or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results ‘may’, ‘could’, ‘would’, ‘might’ or ‘will be taken’, ‘occur’ or ‘be achieved’ or the negative connotation thereof. Forward-looking statements in this news release include, among others, statements relating to exploration and development of the Company’s properties.
Such forward-looking information and statements are based on numerous assumptions, including among others, that the results of planned exploration activities are as anticipated, the anticipated cost of planned exploration activities, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company’s planned exploration activities will be available on reasonable terms and in a timely manner. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, the limited operating history of the Company, aboriginal title and consultation issues, reliance on key management and other personnel, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, availability of third party contractors, availability of equipment and supplies, failure of equipment to operate as anticipated, accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining governmental or other approvals.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235400
2025 could be a year of transformation for the cannabis industry.
With the potential rescheduling of cannabis on the horizon, a new era of opportunity awaits.
However, the industry faces key challenges that must be addressed to realize this potential fully.
Rescheduling and Regulatory Changes
A shift in federal drug policy could be on the horizon for the cannabis industry if it is rescheduled from a Schedule I to a Schedule III substance in 2025.
In May, the US Department of Justice initiated the process to potentially reschedule cannabis on the recommendations of the US Department of Health and Human Services (HHS).
In August, the US Drug Enforcement Administration (DEA) published a Notice of Proposed Rulemaking in the Federal Register, an important step in the formal process of rescheduling.
On November 26, after a public comment period, the DEA announced it would hold a formal hearing on the matter.
If successful, this move has the potential to significantly benefit cannabis businesses by removing barriers to essential services like banking and patent protection. However, the process has encountered delays and is now not expected to be finalized until late 2025.
On October 31, the trial was postponed from December 2 until early 2025 when Chief Administrative Law Judge John Mulrooney II challenged the process by which the DEA selected its witnesses, requesting more information on the qualifications of those set to testify.
“Indeed, the [Participant Letter] contains only a list of persons and organizations accompanied by one or more email addresses, without the benefit of notices of appearance, addresses, or even phone numbers,” the Judges order says, as reported by Marijuana Moment. Judge Mulrooney gave the DEA until November 12 to “provide its counsel(s) of record who will be appearing in these proceedings, as well as any known conflicts of interest that may require disclosure.”
On November 20, Judge Mulrooney ruled who could testify in the trial. The decision came after some witnesses withdrew their requests to participate. Nearly everyone on the list was approved, with only a few exceptions.
Following a motion to remove the DEA as a proponent of rescheduling on allegations that the agency conspired with a prohibitionist group — a charge the agency denies — Judge Mulrooney ruled that such a decision would be beyond the jurisdiction of the ALJ’s office. The resolution of this matter remains uncertain. A preliminary hearing to address procedural matters for rescheduling was held on December 2 with no witness testimony.
Adding to the complications, federal health officials denied the DEA’s request to have HHS officials testify at the 2025 hearing. This prompted the DEA to request that Judge Mulrooney subpoena HHS representatives, which was granted.
The outlook for cannabis reform, once seemingly straightforward, is now uncertain, particularly regarding the timing and likelihood of rescheduling.
During a roundtable discussion with cannabis industry leaders, Cannabis Science and Technology inquired as to how the results of this election might impact the rescheduling of cannabis.
Kim Anzarut, CEO and founder of Allay Consulting, replied “With Trump’s re-election, Trump might continue to leave cannabis policy largely to the states but could lean toward rescheduling if it proves to be a popular move that aligns with GOP support for states’ rights.”
Anzarut continued: “On the other hand, new leadership could prioritize rescheduling or even push for full legalization to align with social equity and justice reform efforts. Either way, the FDA and DEA are being directed to reevaluate cannabis’ current status, which will set the stage for the inevitable regulatory overhaul.”
David Vaillencourt, founder and CEO of The GMP Collective, chairman of S3 Collective and Vice-Chair of ASTM International Committee D37 on Cannabis Standards, also expressed his thoughts: “Trying to forecast what a Trump administration might do is like picking stocks based on a fortune cookie: amusing but unreliable.”
“That said, there is reason for cautious optimism. Trump’s pick for Secretary of Health and Human Services – assuming he is confirmed by the Senate – Robert F. Kennedy Jr. supports natural medicine and criticizes the FDA’s rigidness. Additionally, we saw Trump endorse Florida’s Amendment 3 to legalize adult-use cannabis. Whether this signals a genuine shift or a strategic move to outmaneuver (Ron) DeSantis is anyone’s guess,” he added.
Trump has signaled a willingness to support cannabis legalization, but several of his cabinet picks have either voted against measures to advance legislation related to the industry or spoken out against cannabis reform.
If rescheduling is successful, it would also remove the trigger for the Internal Revenue Service tax code 280E to apply, which prevents cannabis business owners from deducting regular business expenses.
Even if rescheduling efforts falter, the SAFER Banking Act, which passed a House vote with bipartisan support in 2023, could provide much-needed access to financial services. However, the act is unlikely to pass through the Senate before the current Congress ends on January 3, 2025, effectively sending the initiative back to square one.
Despite this setback, there may be renewed hope for banking reform as Rep. French Hill (R-AR), a supporter of cannabis banking legislation, has been selected to serve as chair of the House Financial Services Committee.
While the US grapples with these rescheduling and banking complications, Health Canada is proposing a series of changes to ease the administrative burden and reduce spending and wait times.
Some of the changes proposed in June include simplifying licensing, production and security clearance requirements, increasing production limits for “micro-cultivators” and making it easier for licensees to submit required reports to Health Canada. Comments submitted by the public are currently under review.
Market Expansion and Business Opportunities
The cannabis industry is primed for growth, with US sales projected to hit US$71.8 billion by 2028, according to Ocean Como’s 2024 Cannabis Industry report citing IBIS World data.
This upward trajectory will be fueled by legalization efforts, new market entrants and product innovation.
Research and product development will maintain their importance as the industry adapts. This creates opportunities for businesses specializing in research, testing and product formulation. The reclassification could also attract research funding from the healthcare and wellness sectors, interested in cannabis-based therapies and treatments.
Maridose, a DEA-licensed cannabis producer, launched a Series A funding round at the Benzinga Cannabis Capital Conference in October. Earlier, after the DEA initiated rescheduling proceedings in May, Maridose told Reuters that it had “been receiving more inquiries from both non-profits and commercial entities, including state-licensed cannabis firms.”
Market consolidation is set to continue in 2025, and mergers and acquisitions will create opportunities for both established players and emerging companies to expand market share and access new resources.
“Those who have the cash and ability to expand can find great deals from those who are out of time,” Steven Ernest, vice president of originations for Chicago Atlantic, said at MJBizCon in early December. “It is always darkest before the dawn, and now is the time to be aggressive and acquire cash flow-generating assets.’
At the state level, recreational cannabis is legal in 24 states, while medical cannabis is legal in 40. Minnesota is the only emerging market to date, with the launch of recreational sales slated to begin in 2025, although there have already been delays. A bill to legalize medical marijuana was also recently re-introduced in South Carolina.
The hemp sector, a significant part of the cannabis market, faces a dynamic landscape. While the 2018 Farm Bill legalized hemp cultivation, the proposed Rural Prosperity and Food Act takes a more restrictive approach to the definition of hemp by considering all forms of THC, not just delta-9, and capping the total THC content at 0.3 percent.
This potential shift could impact the regulation of CBD and other hemp-derived cannabinoids, creating both opportunities and challenges for hemp businesses as they adapt to changes.
Companies Worth Watching
Major players Curaleaf (TSX:CURA, OTCQX:CURLF), Trulieve (CNSX:TRUL,OTCQX:TCNNF), Green Thumb (CNSX:GTII, OTCQX:GTBIF), Verano (OTCQX:VRNOF) and Tilray (NASDAQ:TLRY,TSX TLRY) continue to dominate the retail and production space, holding significant market share.
Meanwhile, Canopy Growth (NASDAQ:CGC,TSX:WEED) possesses an advantage with its sizeable patent portfolio, a testament to its commitment to research and development.
Lesser-known retailer and producer Goodness Growth was rebranded as Vireo Growth (CSE:VREO, OTCQX:VREOF) in July and underwent a leadership transition in October. The company reported solid Q3 results, and CEO Amber Shimpa, expressed optimism about Vireo’s prospects, particularly in the burgeoning Minnesota market.
On December 18, the company raised US$75 million in equity financing and announced its intention to expand its market share with the acquisition of four single-state operators.
As the cannabis industry continues to mature, these and other companies will be battling for dominance in a rapidly evolving market.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
2024 saw the cannabis industry grappling with persistent challenges, mirroring those of the preceding two years. The absence of meaningful regulatory reform in both the US and Canada continues to stifle market growth
There was some positive momentum in the US as new markets entered the industry and the US Drug Enforcement Administration moved to reschedule cannabis from Schedule I to Schedule III; however, subsequent roadblocks suggest the process could take longer than industry hopefuls originally anticipated.
Cannabis companies in the sector continue to move forward and develop their offerings, and with potential catalysts ahead some investors are interested in getting involved. Looking at the key players is often a good place to get started, so this list of US and Canadian cannabis stocks covers the companies with the largest presence in two major cannabis ETFs.
This list of the biggest publicly traded cannabis companies was put together based on the top-weighted cannabis stocks included in the AdvisorShares Pure US Cannabis ETF (ARCA:MSOS) and the Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ) as of December 23, 2024. Share price information for the companies was accurate as of that time.
US cannabis market
Cannabis is federally illegal in the US, but state market openings have allowed some operators to thrive. Typically these firms set up vertically integrated businesses with a focus on branded products, retail networks and licenses.
While these companies have adapted to regulatory challenges, they have much to gain from country-level reform in the US, and are eager to see more welcoming federal laws that will allow their businesses to develop further.
US-focused cannabis fund
The AdvisorShares Pure US Cannabis ETF (ARCA:MSOS) provides exposure to public companies exclusively operating within the US cannabis industry. By investing in companies that are working in states with clear guidelines, MSOS gives investors a way to be more selective about the types of cannabis companies they’re investing in.
Green Thumb Industries is a multi-state operator (MSO) with headquarters in Chicago, Illinois.
The company is involved in the entire process of the industry, from cultivating and producing cannabis products to selling them in its own retail stores, of which there are many across the United States. Green Thumb Industries owns a portfolio of well-known cannabis brands like Rythm, Beboe, Dogwalkers, Incredibles and Doctor Solomon’s.
Trulieve is another major player in the cannabis industry, with a strong focus on medical cannabis. The company offers a diverse selection of cannabis products including flower, pre-rolls, concentrates, edibles, topicals and more.
Vertically integrated, Trulieve Cannabis has a dominant market share in its home state of Florida, as well as in Arizona and Pennsylvania. In June 2024, the company opened its 200th dispensary in the United States.
Curaleaf Holdings has a significant presence in the US cannabis market, with over 150 dispensaries and several cultivation centers across 19 states. The company is also continuing its expansion into the European cannabis sector, where it already has a strong presence. Curaleaf began trading on the Toronto Stock Exchange on December 14, 2023.
Verano Holdings is a vertically integrated cannabis company. It delivers high-quality products out of its 150 Zen Leaf and MÜV retail locations, which are spread across 14 states.
Verano moved from the CSE to Cboe Canada on October 18, 2023, a move to increase the company’s visibility and accessibility to investors, while leaving it in a better position to transition to a US exchange if cannabis is legalized there, according to CEO George Archos.
Cresco Labs is a vertically integrated multi-state cannabis operator in the United States. A leading US cannabis company, it is known for its strong brands like Cresco, High Supply and Good News.
Cresco Labs controls its supply chain from cultivation to retail, offering a wide range of products. While it has its own stores, it focuses heavily on wholesale, getting its products into dispensaries across the country.
Canadian cannabis market
In 2018, Canada became the first G7 nation to legalize adult-use cannabis and create its own streamlined program regulated by both federal and provincial powers. Since then, companies working in the country have faced ups and downs in dealing with tight marketing rules, high tax rates and ongoing competition with the unregulated market.
Canada-based cannabis fund
The Global X Marijuana Life Sciences Index ETF (TSX:HMMJ) was the first cannabis ETF available in Canada, and it holds a variety of publicly traded companies involved in cannabis, along with several non-flower companies.
While HMMJ does not invest in US-based multi-state operators, it does have exposure to the US market through Canadian companies that have interests in the US cannabis industry. Overall, HMMJ is designed to give investors broad exposure to the cannabis industry, with a particular focus on North American companies.
This ETF had a year-to-date loss of 0.32 percent as of December 23 and a price point of C$9.29.
Innovative Industrial Properties is a real estate investment trust that provides specialized real estate opportunities for cannabis companies in 19 states. Its properties mostly consist of processing plants, greenhouses and warehouses, with retail spaces making up a small percentage of its portfolio.
The firm has provided long-term absolute net lease agreements to some of the cannabis industry’s biggest names, including Green Thumb, Tilt Holdings (NEO:TILT,OTCQB:TLLTF), Ascend Wellness (CSE:AAWH.U,OTCQX:AAWH) and Curaleaf. The company’s attractive sale-leaseback program has helped cannabis companies access a source of capital, a much-needed workaround in the US where there are fewer traditional financing options.
Jazz Pharmaceuticals is a global biopharmaceutical company focused on developing and commercializing medicines for people with serious diseases, often with limited or no other options. They have a diverse portfolio of products in areas like sleep disorders, cancer and epilepsy.
Jazz Pharmaceuticals’ cannabis business stems from their 2021 acquisition of GW Pharmaceuticals and its epilepsy medicine Epidiolex for a whopping US$7.2 billion. This made big waves as it was one of the largest moves by a traditional pharmaceutical company into the cannabis space.
Cronos Group is the Canada-based company behind the Spinach, Peace Naturals and Lord Jones cannabis brands. In Canada, Cronos’ Spinach brand is in the top three for retail sales in the flower, edible and vape categories.
In late 2023, the company re-entered the German medical cannabis market through its partnership with a German medical cannabis company called Cansativa Group, and is positioned to take advantage of potential adult-use legalization in the country. Cronos also serves the Israeli market through its subsidiary Cronos Israel.
SNDL, formerly known as Sundial Growers, is the largest private-sector liquor and cannabis retailer on the Canadian market. They cultivate and sell cannabis products under various brands including Top Leaf, Sundial Cannabis, Palmetto and more. They focus on premium indoor cultivation and have a strong presence in the Canadian market.
SNDL has faced financial challenges in the past, but in Q3 2024 the company’s cannabis business saw revenue gains for the 11th consecutive quarter.
Canopy Growth is a company that’s grown alongside Canada’s cannabis industry. Founded in 2013, it has become one of the largest producers of cannabis in the world, fostering brand deals with celebrities like Martha Stewart and Snoop Dogg.
The company maintains a strong focus on medical cannabis, with a dedicated division called Spectrum Therapeutics, which offers a variety of products and resources for patients seeking cannabis-based treatments.
FAQs for investing in cannabis
Are cannabis stocks worth investing in?
Each investor will have to think and act for themselves to manage their own risk exposure, but it’s no secret that cannabis stocks have taken a beating for some time now. While financial experts point to the long-term upside of US operators as more state markets expand, the stock market has not been kind to these names lately.
Are cannabis stocks considered a high- or low-risk investment?
Cannabis investments are extremely young in the grand scheme of the investment universe. There is an exciting and refreshing element to these stocks, but the market has always been characterized by volatility and unpredictability.
While wild, spontaneous swings in the open market have become less common, cannabis stocks are often moved — both positively and negatively — by big pieces of market news or legalization updates.
Why do people buy cannabis stocks?
Investors may choose to get exposure to the cannabis market as a way to participate in the development of a new drug market with consumer packaged goods capabilities. Some participants are bullish on the industry’s long-term outlook and expect more welcoming laws in the US and across the world to provide upward momentum.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
As the year closes, we’re taking a look back at our most popular uranium news articles of 2024.
The uranium sector has been on a rollercoaster in 2024, a year that saw the uranium price break above US$100 per pound.
Countries concerned with the metal, especially the United States, China and Russia, were the drivers of some of the biggest uranium news items in 2024. News of a major acquisition also made the cut as one of the year’s biggest uranium headlines.
Read on for the list of our top five uranium stories of 2024, including updates on what has happened since.
1. Biden Signs Bill Banning Russian Uranium Imports, Restrictions to Begin in 90 Days
Among the biggest uranium news during the first half of 2024 is the United States’ Prohibiting Russian Uranium Imports Act, which was signed into law by US President Joe Biden on May 13 after it received unanimous approval in the Senate on April 30.
The act, which took effect on August 11, ended the country’s three-decade dependence on Russian uranium.
The US said that it is focused on American uranium production and enrichment. Centrus Energy (NYSEAMERICAN:LEU), the country’s biggest trader of enriched uranium from Russia, is also producing high-assay low-enriched uranium (HALEU) at the American Centrifuge Plant in Piketon, Ohio.
The Piketon demonstration project has reportedly enriched more than 100 kilograms of HALEU and is expected to ramp up production to 900 kilograms in the coming years.
Under the new law, the Department of Energy (DOE) is allowed to issue waivers authorizing Russian uranium imports according to limits established in an anti-dumping agreement. This usually is for cases where buyers are not able to find an alternative option.
The statute is set to expire at the end of 2040.
2. China Approves 11 Nuclear Reactors in US$31 Billion Green Energy Investment
China made headlines when it announced its approval of 11 nuclear reactors across five major areas: Jiangsu, Shandong, Guangdong, Zhejiang and Guangxi.
State-owned entities China National Nuclear (CNNC) and China General Nuclear Power Group (CGN) were assigned to oversee the construction of the majority of these projects.
According to China, the construction of these reactors forms part of its broader strategy to significantly increase its nuclear power capacity by 2035.
The country’s nuclear power capacity can cover about 5 percent of its electricity demand right now, and it plans to double this to 10 percent by 2035, coinciding with a massive expansion in wind and solar projects.
December 2024 statistics from the World Nuclear Association show that 65 reactors are under construction across the world, 29 of which are in China, with 90 more being planned globally.
3. Russia Restricts US Uranium Exports, Retaliating to American Ban
As a response to the US’ ban on Russian uranium imports, Russia announced its temporary restrictions on enriched uranium exports to the US on November 15.
The ban, which will be in place until December 31, 2025, applies to all products under the definition ‘uranium enriched with the isotope uranium-235” and does not include the exports under one-time licenses issued by the Russian Federal Service for Technical and Export Control.
Like the US’ allowance of waivers, the Russian decree also accounts for special cases where companies with permits from the export control watchdog are allowed to export uranium to the United States.
The move came two months after President Vladimir Putin said in a September 11 government meeting that Moscow should consider limiting exports of key metals such as uranium, titanium and nickel in retaliation for Western sanctions.
4. US to Spend US$2.7 Billion on Low-enriched Uranium from Domestic Sources
Nearly a month before the US ban on Russian uranium import took effect, the country said that its Department of Energy (DOE) would purchase up to US$2.7 billion worth of low-enriched uranium from domestic sources.
The proposal, issued on June 27, said that the purchase would “enhance national energy security and create new jobs in the nuclear industry.”
In December, the DOE penned supply contracts with six companies: Centrus Energy subsidiary American Centrifuge Operating, General Matter, Global Laser Enrichment, Louisiana Energy Services, Urenco USA’s Laser Isotope Separation Technologies and Orano Federal Services.
“(These companies) will be able to compete for future work to supply LEU, fostering strong commercial sector investment,” the DOE press release read.
According to the DOE, all contracts are valid for 10 years and each company receives a minimum contract of US$2 million.
This move, along with other initiatives, are discussed in the DOE’s Pathway to Advanced Nuclear Commercial Liftoff report, which supports the advancement of technologies that can help the US achieve net-zero emissions by 2050.
5. Paladin Energy to Acquire Fission Uranium in C$1.14 Billion Deal
The biggest uranium acquisition news of 2024 is the C$1.14 billion deal between Paladin Energy (ASX:PDN,OTCQX:PALAF) and Fission Uranium (TSX:FCU,OTCQX:FCUUF), which was announced on June 24.
The terms of the agreement state that “Paladin will acquire 100 percent of the issued and outstanding shares of Fission, while Fission shareholders will receive 0.1076 fully paid shares of Paladin for each Fission share they hold.”
Once completed, Paladin shareholders will hold 76 percent of the company, while Fission shareholders will collectively hold the remaining 24 percent.
Paladin received the final approval from Canadian authorities to perform the acquisition on December 18, and the deal officially closed on December 23.
“The combination of Paladin and Fission creates a world-class diverse uranium producer operating in multiple countries, with a high-quality portfolio of production, development and exploration assets,” Paladin CEO Ian Purdy said in a December 19 press release.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
As the year closes, we’re taking a look back at our most popular copper news articles of 2024.
Copper performed strongly in 2024, setting a record all-time high of US$5.11 per pound in May. Although the red metal’s price declined in the third quarter, values remained elevated compared to the past two years.
The need for more copper to support the energy transition was a significant point of discussion as well, and analysts weighed in on just how much is needed.
Read on for the list of our top five copper stories of 2024, including updates on what has happened since.
1. Chinese Copper Smelters to Trim Output in Response to Falling Margins
On July 16, Chinese smelters Daye Nonferrous Metals (HKEX:0661) and Baotou Huading Copper Industry Development made headlines following their decision to cut production outputs in 2025.
The former, a major company, reported a planned 20 percent cut, while the latter, a smaller firm, announced a 40 percent reduction.
Both smelters attributed the decrease to “diminishing profit margins caused by an ongoing shortage of ore concentrate,” as reported by Bloomberg.
Other factors affecting the decision include the decrease in smelter utilization rates caused by low treatment and refining charges towards the end of 2024 and significant production losses.
Daye Nonferrous Metals’ half-year earnings reveal revenue was up by 55 percent compared to the first half of 2023, largely attributed to a resumption of smelting at its plant.
2. BHP: Global Copper Demand to Surge 70 Percent by 2050
Mining giant BHP (ASX:BHP,NYSE:BHP,LSE:BHP) forecast that copper demand will reach over 50 million metric tons by 2050.
In a September 30 report, BHP said, “Unlike the 20th century, where the adoption of cars, electricity, consumer electronics and white goods occurred at different times across various regions, we expect to see more-or-less concurrent adoption of the copper-intensive technologies of EVs, renewables and data centres around the world.”
The company anchored its predictions on several factors, namely traditional economic growth, the ongoing global energy transition and the expansion of digital infrastructure.
Global efforts are currently intensified to curb greenhouse gas emissions, resulting in a projected rise in copper demand.
Current copper mines are expected to supply more than half of the copper needed to meet global demand over the next decade. However, by 2035, production from these mines could decline by 15 percent due to decreasing ore grades, highlighting the urgent need for significant investment in upgrades and new projects to sustain supply.
Despite these challenges, the pace of new copper discoveries has dramatically slowed, with only four major finds in the last five years. This scarcity of greenfield projects poses a substantial challenge to meeting future demand.
In summary, major market players like BHP will need to adopt innovative strategies and make substantial investments to bridge the gap, ensuring a stable supply of copper as industries increasingly rely on the metal for clean energy solutions.
3. IEF: World Needs 35 to 194 New Copper Mines by 2050 to Support Massive Demand
The International Energy Forum (IEF) also published a significant copper report in 2024, which highlighted the need for more copper mines by 2050 and government support and incentives for these projects.
The report singled out limited exploration as one of the copper market’s biggest challenges at the moment. It also discussed the long periods between discovery and production.
“New copper mines that started operation between 2019 and 2022 took an average of 23 years from the time of a resource discovery for mines to be permitted, built, and put into operation,” it said.
The IEF detailed multiple copper demand scenarios through 2050. For business as usual there would need to be 35 new copper mines by 2050; EV plus grid would require 54 new copper mines; and net-zero by 250 would require a massive 194 new copper mines.
IEF Secretary General Joseph Mongle emphasized that without changes in current policies, 100 percent realization of EV adoption would not be possible.
“To make the best use of available copper supply, governments should prioritize economy-wide electrification, which is the foundation of climate policy. Moreover, governments need to incentivize and support new copper mine projects,” he said.
4. LME Sanctions on Russian Metal Push Copper, Nickel and Aluminum Prices Higher
On April 12, the British government and the US Department of the Treasury announced bans of Russian aluminum, nickel and copper on the London Metal Exchange (LME) and Chicago Mercantile Exchange (CME).
The LME is the oldest and largest metals trading forum in the world, responsible for setting benchmark prices for metals such as aluminum and zinc.
The news led to increases in the prices for all three metals, with aluminum jumping 9.4 percent — its largest one day increase since 1987 — nickel soaring by 8.8 percent and copper getting a smaller 1.6 percent bump.
The restrictions cover any metal produced in Russia starting April 13. Owners of Russian metal produced before the said date were allowed to place their metal on LME warrant, provided they furnish evidence of production dates.
The ban is part of continuing sanctions imposed by the US and UK on Russia due to its invasion of Ukraine. Trading of Russian metals outside of the LME and CME’s systems is not included in the ban.
There have been no updates on the restrictions as of this writing.
5. Goldman Sachs Cuts Copper Price Forecast on Weak Chinese Demand
While the reports above discussed the increasing demand for copper, China’s demand for the red metal was reportedly weakening due to a slow economic recovery.
Supporting this claim was American investment bank Goldman Sachs (NYSE:GS), which in September significantly lowered its 2025 copper price forecast due to that factor. The firm reduced its prediction to US$10,100, a large dip from the previous US$15,000 forecast.
According to Bloomberg, the US$15,000 prediction came from former analysts Jeffrey Currie and Nicholas Snowdon, while the new outlook was outlined in a note by analysts including Samantha Dart and Daan Struyven.
‘Softer-than-expected China commodity demand, as well as downside risks to China’s forward economic outlook, lead us to a more selective, less constructive tactical view of commodities,’ the analysts said.
Copper reportedly had an average monthly price of over US$9,000 per metric ton in November, down from its over US$11,000 per metric ton price record in May.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
A man who killed 35 people by plowing his car into a crowd at a sports center in southern China has been sentenced to death, state media reported on Friday.
Fan Weiqiu, 62, rammed his car into people exercising at the outdoor venue in the city of Zhuhai last month, in the country’s deadliest known act of violence against the public in a decade.
China has been gripped by a surge of sudden episodes of violence targeting random members of the public – including children – in recent months as economic growth stutters, unnerving a public long accustomed to low violent crime rates and ubiquitous surveillance.
Fan was sentenced at the Zhuhai Intermediate People’s Court on Friday after pleading guilty earlier in the day, state broadcaster CCTV reported.
Shortly before 8 p.m. on November 11, Fan drove his car into the crowd, in a rage caused by his failed marriage and what he saw as an unfair divorce settlement, the court concluded.
As his small off-road vehicle mowed across the grounds of Zhuhai Sports Center, he hit dozens of people exercising around a track.
After the attack, officers found Fan in the car trying to injure himself with a knife and took him to hospital, police said in their previous statement.
“The court finds that defendant Fan Weiqiu’s criminal behavior was despicable; the nature of the crime particularly was brutal; the way the crime was committed was particularly cruel,” the court said, as quoted by CCTV.
The attack had the highest such death toll has seen since 2014, when a string of attacks rocked the far western region of Xinjiang.
The hit-and-run prompted Chinese leader Xi Jinping, who described the attack as “extremely vicious,” to call for severe punishment, CCTV previously reported.
Fan’s sentencing came just days after another Chinese court handed down a suspended death sentence to a man who rammed his car into crowds outside a primary school in central Hunan province injuring 30 people, including 18 students.
Since taking power in 2012, Xi has launched a sweeping campaign against graft and disloyalty, taking down corrupt officials as well as political rivals at an unprecedented speed and scale as he consolidated control over the party and the military.
Now well into his third term, the supreme leader has turned his relentless campaign into a permanent and institutionalized feature of his open-ended rule.
And increasingly, some of the most fearsome tools he has wielded to keep officials in line are being used against a much broader section of society, from private entrepreneurs to school and hospital administrators – regardless of whether they are members of the 99-million-strong party.
The expanded detention regime, named “liuzhi,” or “retention in custody,” comes with facilities with padded surfaces and round-the-clock guards in every cell, where detainees can be held for up to six months without ever seeing a lawyer or family members.
It’s an extension of a system long used by the party to exert control and instill fear among its members.
New detention regime
For decades, the party’s disciplinary arm, the Central Commission for Discipline Inspection (CCDI), had run a secretive, extralegal detention system to interrogate Communist Party cadres suspected of corruption and other misdeeds. Officials under investigation were disappeared into party compounds, hotels or other covert locations for months at a time, with no access to legal counsel or family visits.
In 2018, amid growing criticism over widespread abuse, torture and forced confession, Xi scrapped the controversial practice known as “shuanggui,”or “double designation” –a nod to the party’s power to summon members for investigation at a designated time and place.
But the Chinese leader did not abolish secret detention, which had been a potent weapon in his war on corruption and dissent. Instead, it was codified by law, given a new name and placed under the purview of a powerful new state agency, the National Supervisory Commission (NSC).
Founded in 2018 as part of the constitutional revision that cleared the way for Xi to rule for life, the new agency consolidated the government’s anti-graft forces and merged them with the CCDI. The two agencies work hand in glove and share the same offices, same personnel and even the same website – an arrangement that expands the remit of the party’s internal graft watchdog to the entire public sector.
The new liuzhi detention regime has kept many features of its predecessor, including the power to hold suspects incommunicado in custody and a lack of independent oversight.
The lawyer, who requested anonymity due to fears of retribution from the government, said many of their clients had detailed abuse, threats and forced confessions while in liuzhi custody.
“Most of them would succumb to the pressure and agony. Those who resisted until the end were a tiny minority,” the lawyer said.
Liuzhi casts a much wider dragnet than shuanggui, targeting not only party members, but anyone who exercises “public power” – from officials and civil servants to managers of public schools, hospitals, sports organizations, cultural institutions and state-owned companies. It can also detain individuals deemed to be implicated in a graft case, such as businessmen suspected of paying bribes to an official under investigation.
High-profile liuzhi detainees include Bao Fan, a billionaire investment banker, and Li Tie, a former English Premier League soccer star and coach of China’s national men’s team. (Li was sentenced to 20 years in prison for corruption this month.) At least 127 senior executives of publicly listed firms – many of them private businesses – have been taken into liuzhi custody, with three quarters of detentions taking place in the past two years alone, according to company announcements.
State media says the expanded jurisdiction fills longstanding loopholes in the party’s anti-corruption fight and enables graft busters to go after everyday abuse of power endemic in the country’s behemoth public sector, from bribes and kickbacks in hospitals to misappropriation of school funds.
Critics say it is another example of the party’s ever-tightening grip over the state and all aspects of society under Xi, China’s most powerful and authoritarian leader in decades.
Some of the detention centers built or expanded in China since 2018
The real number is likely much higher, as many local governments don’t publish tender notices online, or delete them after the bidding is finished.
The spate of construction appears to be largely driven by a surge in demand for detention cells due to the NSC’s new broad remit, as well as efforts to make liuzhi facilities more standardized and regulated than the hotels and villas often used for shuanggui, the documents revealed.
Soft padded rooms
An analysis of the tender notices shows a lull in construction during the pandemic, but the number of projects picked up again in 2023 and 2024. More detention centers have been built, and more funds have been allocated, in provinces and regions with a higher percentage of ethnic minorities.
Shizuishan, a city in the northwestern region of Ningxia – the official heartland of the Hui Muslim minority – was approved to build a 77,000 square feet liuzhi site with a budget of 20 million yuan ($2.8 million) in 2018, according to a government notice.
The document provides a rare glimpse into what the interior looks like. All detention cells, interrogation rooms, and the infirmary must have fully padded walls, cabinets, tables, chairs and beds, with all edges rounded for safety.
No exposed electrical wiring or power sockets are allowed, and floors must be treated with anti-slip surfaces. All ceiling-mounted installations, including surveillance cameras, lights, fans and loudspeakers, must incorporate “anti-hanging designs.” In the bathrooms, washbasins and stainless-steel toilets must be fully padded too, while showerheads and surveillance cameras must be mounted on the ceiling, according to the notice.
These maximized safety features are designed to prevent detainees from taking their own lives – an issue that had long dogged shuanggui detentions.
But Shizuishan’s liuzhi center turned out to be too small for the influx of detainees. In June, the city published another notice seeking to expand the facility to address the problem of “insufficient facilities and equipment.” The project includes a new building for interrogation, a new staff canteen and reconfiguration of existing buildings to create more detention cells.
The party never published official figures on shuanggui detention, and the numbers on liuzhi are nearly as elusive. In 2023, the only year national data was available, 26,000 people were detained by the NSC and its local branches across the country.
Provincial data, although patchy, has pointed to a sharp increase in the number of detentions. In the northern region of Inner Mongolia, 17 times more people were placed under liuzhi custody in 2018 than those subject to shuanggui in 2017, according to the region’s supervisory commission.
Dingxi, one of the poorest cities in the northwestern province of Gansu, said its 305-million-yuan ($42 million) detention center would be built following requirements specified by the CCDI and NSC to achieve the “standardized, law-based, and professional operations” of the liuzhi facility.
The massive complex, featuring 542 rooms, will include 32 detention cells, accommodation for investigators and guards to live on site, as well as other facilities to meet their daily needs, according to a 2024 budget document of the city’s anti-graft agency.
Life under liuzhi
Chinese officials and state media have hailed the transition from shuanggui to liuzhi as a crucial step toward what they describe as “the rule of law in anti-corruption work.”
The shuanggui system had long been criticized for using threats, intense pressure or even torture to secure confessions. A 2016 report by Human Rights Watch documented 11 deaths in shuanggui custody from 2010 to 2015, and numerous instances of abuse and torture.
Unlike shuanggui, which had no legal basis, liuzhi is inscribed in the national supervision law – introduced in 2018 to regulate the NSC.
The law bans investigators from collecting evidence through illegal means such as threats and deception; it prohibits insulting, scolding, beating, abusing and any form of corporal punishment of those under investigation. The law also requires interrogations to be recorded on video.
But legal experts say the legislation only wraps a thin veil of legality around a detention regime that operates outside the judicial system, lacks external oversight and remains inherently prone to abuse.
“In the past, it was extra-legal. Now, some critics call it ‘legally illegal,’” said a Chinese legal scholar who has studied the NSC. They spoke on condition of anonymity, citing fears of government retribution.
China’s opaque court system, which answers to the Communist Party, already boasts a conviction rate above 99%.
But unlike criminal arrests, liuzhi takes place outsidethe judicial process and does not allow access to legal representation, raising concerns for potential abuse of power, said a second Chinese scholar who also requested anonymity.
In September, Zhou Tianyong, a top economist and former professor at the elite Central Party School, where the Communist Party trains its senior officials, warned that local authorities had been using corruption probes to extort money from private entrepreneurs to fill their strained coffers.
In a viral article that was later censored, Zhou called for an end to the practice by local anti-graft agencies of detaining businessmen on suspected or trumped-up bribery charges and forcing them to pay for their release. “If (this trend) spreads, it will undoubtedly lead to another disaster for the national economy,” Zhou wrote.
In recent years, allegations of abuse and forced confessions have emerged in multiple liuzhi cases publicized online.
Among them is Chen Jianjun, an architect-turned-local official who claimed he was deceived and forced into making false confessions of bribe-taking while detained under liuzhi in 2022 in the northwestern city of Xianyang.
During his six months of detention, the 57-year-old was watched by rotating pairs of guards around the clock and forced to sit upright for 18 hours a day without moving or speaking, with any slightest bending of his back immediately met with reprimands from the guards, according to a written account of his experience posted on social platform WeChat.
Chen was only allowed to sleep for less than six hours a day under bright lights that were never switched off; in bed, he must lie on his back and keep his hands above the blanket in sight of the guards, he wrote.
“The prolonged torment left me physically and mentally exhausted, with blurred consciousness, a mental breakdown, chaotic thoughts and hallucinations,” Chen wrote, adding that by the time he emerged from liuzhi, he had lost 15 kilograms.
In 2023, Chen was sentenced to six years in prison for accepting bribes of 2.5 million yuan ($340,000). He appealed and is waiting for a ruling, according to Caixin, a business magazine known for its investigative reporting.
The Chinese lawyer who represented officials in court after they were released from liuzhi custody said it was common for detainees to be forced to sit in one position for up to 18 hours a day.
“They had to sit continuously without moving, causing severe pressure ulcers on their buttocks. Some medicine would be applied, but they were made to continue sitting, leading to further deterioration. It was extremely torturous,” they said.
Some clients were also given very little food until they confessed, causing malnutrition and a host of other health problems, the lawyer said. “Many people eventually developed auditory hallucinations and felt like they were losing their minds,” they said.
According to the lawyer, another tactic commonly used by investigators was to detain an official and their spouse simultaneously, even if the spouse did not hold public office.
It’s a two-pronged approach: investigators can try to gather clues about the official’s alleged transgression from the spouse; while the spouse can be held hostage to pressure the official to confess, the lawyer explained.
In some cases, investigators had also threatened to detain officials’ children for interrogation, the lawyer added.
A draft amendment to the national supervision law, which is under review by China’s top legislature, appears to nod to concerns of potential abuse. It added a clause that requires investigators to carry out investigations in a “lawful, civilized and standardized manner.”
But the draft proposal has ignored calls to allow access to legal counsel during liuzhi detention. Instead, it has suggested extending the maximum detention period from six months to eight months, if the suspect is likely to be sentenced to a prison term of 10 years or longer; the entire liuzhi period can be reset and restarted if new offenses are discovered, meaning a maximum of 16 months of custody, according to the proposal.
The draft amendment has sparked heated debate and criticism from Chinese lawyers and legal scholars, who say the powers granted to investigators during liuzhi have far outweighed the protection of detainees’ rights.
“Prolonged detention and interrogation present an extreme test that surpasses the physical and mental limits of the detainee,” Dacheng, a Beijing-based law firm, said in an article on its social media account.
“Under such extreme conditions, where both the body and the mind are pushed to their limits, it becomes increasingly difficult to tell whether the detainee is giving an ‘honest confession’ based on facts or opting for ‘full cooperation’ by compromising the truth under unbearable pressure.”
