HONG KONG (Reuters) – Hong Kong-listed shares of Semiconductor Manufacturing International Corp fell more than 7% on Monday after the United States imposed restrictions on exports to China’s biggest chip maker, citing a risk of military use.
SMIC’s shares fell as much as 7.9% to HK$17.12 ($2.21), the lowest since May 29, and were last down 6.7%.
Earlier this year SMIC raised $6.6 billion in a secondary listing on Shanghai’s tech-centric STAR market.
The company said it intended to use the funds to build out additional capacity for producing advanced chipsets.
The restrictions, however, throw a wrench in SMIC’s plans as it relies on equipment produced by companies hailing from the U.S. or U.S-allied nations.
Following news of the restrictions, an op-ed published on Sunday in the Global Times, a tabloid owned by state-backed media outlet People’s Daily, called for China to embark on a “long tech march” to counter the U.S.’ high-tech suppression against China.
(Reporting by Donny Kwok in Hong Kong and Josh Horwitz in Shanghai; Editing by Kim Coghill and Shounak Dasgupta)