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This was because new US export rules could make it harder for Beijing to reach its goal of being technologically independent.
Semiconductor Manufacturing International Corp, China’s biggest chipmaker, fell as much as 5.2% in Hong Kong on Monday. Hua Hong Semiconductor and Shanghai Fudan Microelectronics also fell as much as 10.4% and 24.6%, respectively.
China chip stocks:
Washington released new export rules on Friday. Without an export license, it will be harder for vendors to sell semiconductors made with US technology. This led to big drops in value.
The controls also say that US people or organizations can’t work with Chinese chipmakers without first getting permission, and they limit the export of manufacturing tools that China could use to make its own equipment.
On Friday, the US Department of Commerce said that it had added 31 companies to its “unverified list” to make it harder for Chinese companies to make or get advanced computer chips that are needed for cutting-edge technologies.
Shenzhen-listed Naura Technology’s stock fell by the most allowed 10% in Shenzhen on Monday after saying that one of its units had been added to the list. The mainland Chinese market was also very bad for ACM Research Shanghai and Advanced Micro-Fabrication Equipment.
Dickie Wong, head of research at Kingston Securities in Hong Kong, said, “Most of the new companies aren’t listed, but the restrictions still affect the market as a whole.”
The restrictions had already caused the Philadelphia Stock Exchange Semiconductor index to fall by more than 6% on Friday. Analysts had said that the new restrictions would hurt Chinese chip makers a lot. Based on end users, China is responsible for almost a quarter of the world’s demand for semiconductors.
“There won’t be peace between China and the US, so any new names on any list won’t go away,” Wong said. “We have to assume that in the near future, more companies will be added to the list.”
Please use the tools for sharing that you can find by clicking the share button at the top or side of each article. The FT.com Terms and Conditions and Copyright Policy say that you can’t copy articles and give them to other people. Send an email to [email protected] to buy more rights. With the gift article service, people can send up to 10 or 20 articles to other people each month. You can find out more at As Chinese traders returned from a week-long vacation, Chinese chipmakers had lost more money than the Chinese markets as a whole. The CSI 300 index of shares listed in Shanghai and Shenzhen fell by 1.1% in the morning trade in Asia,
while the benchmark Hang Seng index in Hong Kong fell by 2.6%.
A trader at China Renaissance named Andy Maynard said, “The U.S. government will never give up on this.” He also said that the low turnover of shares was making them even more unstable.
Traders said that the restrictions were also likely to hurt big suppliers in the rest of the Asia-Pacific region, but that the markets in Japan, South Korea, and Taiwan wouldn’t react until Tuesday when those countries would be back from their vacations.
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